A single family home located in the Liberty Hills subdivision of Solon Ohio goes into foreclosure. The Secretary of H.U.D (U.S. Department of Housing and Urban Development) takes control of the property and notifies City of Solon’s Building Department. The property gets purchased by an individual for about $100,000. In about a month, this owner quickly rehabilitates the interior and exterior of the property and lists it for sale for about $200,000.
As a sidebar; effective October 1, 2011, the maximum loan amount that Fannie Mae and Freddie Mac will back is set to decrease from $729,750 to $625,500. This might make mortgages more expensive or more difficult to get for buyers in high-cost areas. The impact of this sane step on property values in Solon subdivisions like Signature of Solon and Thornbury of Solon and Cuyahoga County in general, will be interesting.
Until 2008, any loan more than $418,000 was considered a jumbo loan, but that later swelled to $625,500 and then was temporarily set at $729,750. Once the current jumbo loan limit expires, lenders who want to make loans over $625,500 either will have to hold onto the mortgage themselves 💡 or find a private investor to purchase it.