Slower Homes Sale Open Up An Opportunity for Some Buyers

Brought to you by

May 31, 2006

By James R. Hagerty
From The Wall Street Journal Online

POMONA, N.Y. -- The cooling market for real estate brought Michael Termine and Uso Mbanefo together.

Mr. Mbanefo, a 43-year-old entrepreneur struggling to launch a clothing-design company, had fallen behind on his mortgage payments. He needed to sell his four-bedroom house here quickly to avoid losing it in a foreclosure. That's when Mr. Termine, a 32-year-old novice real-estate investor, stepped in.

One afternoon in early April, Mr. Termine visited Mr. Mbanefo's office in a strip mall and offered to pay $400,000 for his house. Mr. Mbanefo showed Mr. Termine fliers for nearby homes offered at $600,000 or more. Mr. Termine pointed out that the inventory of unsold homes here, as in many parts of the country, has nearly doubled over the past year. Even so, Mr. Mbanefo said that he might be able to refinance his home, spruce it up and sell it for $500,000.

Click Here to See More.