Many investors from Europe and the United Kingdom are buying real estate in the United States. I interviewed a real estate agent in California a week ago and he was telling me how bad the market was until he started working with investors from Europe and the UK. “They just have a lot of money,” he said, “I met them during a spring break in Europe, I thought there was no work anyway, so I will go and travel a bit, I think it is the best vacation I have ever had and it still continues, the only difference is that now I’m making money. “
Investors don’t need any green cards, good credit, bad credit, or visas, they just need to put at least 35 percent of the purchase price as a down payment. These investors will get a higher interest rate and if they put in 50 percent, they will probably get a much lower interest rate.
Today the euro is much higher than the dollar, so if American investors are excited about foreclosures, can you imagine Europeans, for Europeans everything is much cheaper than for American residents, because the value of the euro is opposite to dollar. Can a foreigner obtain a loan in the United States? Sure they can get a loan, just like an American investor can get a hard money loan without showing any credit information, they just need to show interest. The interest for a mortgage lender is measured in money, banks or hard money lenders will lend you the money, but you will have to deposit a large part of your money, so the property you have acquired will not be lost. bought and get the banks in trouble.
There are also many banks that are selling their loans or notes to foreigners just because they need to take some loans off their shelves, just like you are trying to avoid foreclosure or sell your home. Today’s banks have to deal with many problems, foreclosures, bankruptcies, promissory notes, and money in general. Most of the banks that have lent money to borrowers in the last 3 years are not protected or insured. Three years ago the bank began to lend 1st and 2nd mortgages, the 2nd mortgage is the cause that they do not have mortgage insurance, and since they do not have mortgage insurance they will lose their money if a foreclosure is placed.
So why did banks offer borrowers second mortgages? Because it was the east to qualify and many borrowers tried to avoid refinancing their first mortgage, the banks just wanted to make money and more money and they did. Now banks are no longer willing to lend second mortgages. Read other articles I wrote to learn more about mortgage insurance.