Do Not Have An Anniversary With Your Seller!!!

There is a saying Realtors have in the USA that says, “YOU DON’T WANT TO HAVE AN ANNIVERSARY WITH YOUR SELLER”.  What this actually means is that you do not want to have a listing that goes over a year without selling.  However, that saying doesn’t necessarily apply to Playa del Carmen and the Riviera Maya.

Thinking in terms of anniversaries let’s look back on what the status of the mortgage business in Playa del Carmen was a year ago

-           A year ago almost every developer in town was getting cash for their condo units, and offering “In-house financing”.  That has certainly changed.

-          A year ago the mortgage financing players funding, non-residents purchasing property in Mexico, were different. Two of those are no longer active: IMI Group and Homecomings (GMAC Mortgage).  They have been replaced by three new lenders.

-          A year ago only one lender was providing mortgage financing for Canadians.  We now have three actual lenders providing that service and a good number of Canadians are purchasing property in the area.

-          A year ago the USA housing industry was strong.  Today, and after the terrible crash of their subprime mortgage market, we are slowly but surely seeing American home purchasing clients reappearing on the scene in Playa del Carmen.  Most of them requesting mortgages.

-          A year ago only Americans and Canadians citizens and legal residents could obtain mortgage financing to purchase property in Mexico.  Today, that option has extended to residents and citizens of the U.K. and Españoles (Spaniards).

-          A year ago the Mortgage Por Favor Program did not exist.  Today, this product is one of the most solicited products, primarily by Canadians, to purchase property in Playa del Carmen.

-          A year ago I was knocking at many doors trying to sell mortgages and being told “don’t call us; we’ll call you”.  Today we are getting at least 5 requests from developers, realtors, and particulars soliciting information on our products a week. We are also meeting with 3 clients and/or developers and realtors a week providing them with information on mortgage products in general.

That is certainly a great change from what the mortgage market was a year ago, to what it is now.

What’s ahead? We all might ask.

-           New mortgage programs: new home purchasing, new construction, lot purchase, fractional funding and cash-out programs for non-resident clients wishing to buy property in Mexico. 

-          New and improved funding and underwriting guidelines and policies by those lenders providing mortgage loans in Mexico are being created.

-          More developers and realtors will be offering mortgage financing for their clients in Playa del Carmen.

-          A mortgage funding trend for condominium and home purchasing in Playa del Carmen will take place.

-          And personally, I expect a second boom in the real estate market in Playa del Carmen. 

One of the important principles of Economics says: “Every economy has a business cycle; A Contraction (A slowdown in the phase of economic activity); A Trough (The lowest turning point of business cycle, where a contraction turns into an expansion); Expansion (A speed up in the phase of economic activity); and A Peak (The upper turning of a business cycle).

My personal view is that we are at the end of the trough!

This article is provided by Enrique (Henry) Saldana – Mexico Mortgage Solutions (in Mexico)/Advanced Mortgage Inc. (in the USA) Cell: (984) 116-8528; Cell:  (998) 147-8936 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ; www.mxmortgagesolutions.com

We are available at all times; 24/7-7 days a week. You may contact us with any questions you might have with regards to National Mortgages and Non Resident/Foreign Mortgages.

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