The Ink is Not Yet Dry!
Posted January 27, 2008
Bank of America has agreed to purchase Countrywide for roughly $4.1 Billion. So this makes Bank of America the largest bank in America in regards to mortgages. Many industry analysts have spent much of 2008 speculating on the impact this will or will not have on the market.
And yet… this is not a “done deal” just yet.
Bank of America expects to “close the deal” by the second half of the year, according to the Associated Press. However, the way the agreement has been written, Bank of America could pull out if the losses over the next 2 quarters are more than they expected. If they don’t pull out, they still have a shot to re-negotiate the deal in typical BOA fashion!
What really bugs me in deals like this is the ups and downs. Right now the nation has had enough of “doomsday” talk about the real estate and mortgage slump. Its has become a political stand platform now as well, and it appears that with this news, BOA and CW may well keep us all in suspense for months to come.
Meantime, mortgage rates are still super low and there are plenty of homes to buy, many at a bargin price. While the media is claiming the death of 100% financing, there are still MANY mortgage loans that will allow for No Money Down! In Charlotte, we still have access to 100% mortgage loans.
I am sure we all will watch to see what unfolds next in this “drama.” But I do encourage anyone that is thinking of buying a home to make a move now. Don’t believe everything you see and hear in the media. Otherwise you will be crippled by the fear they spread and not make any moves. That could be a costly mistake.
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