IRVINE, CA -- Following the subprime lending collapse in late 2008,
there was a void in financing for low-credit borrowers with little or no down
payments.
Loans backed by FHA stepped in to fill some of that void, with FHA
purchase loans jumping from just 3.3 percent of all purchase loan originations
in Q4 2006 to 27.2 percent in Q4 2008.
But FHA loans weren’t alone in their resurgence following the fallout
of subprime lending. A lesser-known (although long-used) financing instrument
called a contract for deed (see definition in full article; link below) gained traction in the years
following the collapse of subprime lenders, particularly for low-value homes in
Rust Belt cities like Detroit, Flint, Youngstown and Indianapolis.
New contract-for-deed data collected by ATTOM Data Solutions shows the
trend as illustrated in the infographic below. Here’s a link
to the infographic, and here’s a link
to the full article on this topic.
For a complete copy of the company’s news release, please contact:
Jennifer von Pohlmann
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Sr. Public Relations Manager
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