We’re wondered before what the effect of all the distress sales would have on the size of the pool of potential home buyers.
… historically, only 15 percent of consumers have found themselves with a credit score below 600. Now, a quarter of consumers fit the profile.
Well, there’s 10% shut out of the market because it’s nearly impossible these days to can get a mortgage with a FICO score of 600 or less. And really, you need a credit score of 660+ to be in the game.
So I’ll guess that we’ve lost way over 10% of the potential home buyers to the increase in bad credit ratings caused by short sales, foreclosures, deeds-in-lieu, bankruptcies, a bad economy and other stuff. The article doesn’t say that. I’m just extrapolating.
The Good News
When those Arizonans start qualifying for Arizona home mortgages again in a few years, it’ll be as if a huge stream of people started to move to Arizona ready to buy homes.