Your Mortgage : Few RTC Bargains Even With New Financing

The Resolution Trust Corp. plans to begin offering more cut-rate financing on the property that it’s trying to sell, but most would-be buyers shouldn’t expect to snatch up homes at bargain-basement prices with no down payment and a low-rate loan.

The RTC is the federal agency that was formed a couple of years ago to unload the assets held by failed savings and loans. It has had trouble finding buyers for many of its properties, in part because lenders are leery of loaning money on real estate that has already been in foreclosure once.

To boost sales, the agency recently said that it would begin offering cut-rate loans and other financing incentives on the property in its portfolio.

But despite what some real-estate lecturers and investment gurus on late-night TV say, RTC financing bargains appear to be few and far between.

“Most of the special financing we offer is on commercial developments, like shopping centers or office buildings,” said Kate Spears, a spokeswoman for the RTC. “We prefer to have buyers line up their own financing if they’re looking at single-family homes.”

There’s one notable exception to this rule, Spears said: Under its affordable-housing program, the RTC will offer special financing packages to people who are interested in buying a house that’s valued at $67,500 or less.

Of course, homes worth less than $67,500 are tough to find in Southern California or, for that matter, just about any major metropolitan area in the nation.

Even though some lecturers are getting wealthy by sponsoring seminars aimed at teaching people how to get rich quick by buying RTC property, a look at the agency’s real estate portfolio shows that it offers little for first-time buyers or small-time investors.

Of the 45,000 or so properties that the agency is trying to sell, more than half are big commercial projects, huge apartment complexes and the like--properties too expensive for most individual investors.

Meantime, many of the homes and condominiums that the agency is offering are in areas where the economy is depressed and the outlook for future price increases are bleak.

The RTC has only 183 single-family homes for sale in California, a state that has weathered the recession better than most others. And in all of Los Angeles County--all 4,083 square miles of it--only about a dozen RTC properties are for sale.

If you’re an optimist and willing to do lots some legwork, you might get lucky and find one of the RTC’s few diamonds in the rough. To understand how the bidding process works, order the agency’s free booklet, “How to Buy Property From the Resolution Trust Corp.”

You can request the pamphlet by writing to the RTC Public Reading Room, 801 17th St. NW, Washington, D.C. 20434. Or, you can simply call the RTC Real Estate Information Center toll-free, (800) 431-0600--but don’t be surprised if the line is busy.

Speaking of free brochures, the Mortgage Bankers Assn. of America has expanded its excellent collection of pamphlets that concern a variety of mortgage-related topics. Here’s an updated list of the trade group’s offerings:

* “When Your Loan is Transferred to Another Lender--A Consumer’s Guide.”

* “What Happens After You Apply For a Mortgage.”

* “A Consumer’s Guide to Mortgage Lock-Ins.”

* “How to Save Half on Interest Costs: A Guide to 15-Year Fixed-Rate Mortgages.”

* “Consumer’s Guide to Mortgage Settlement Costs.”

* “A Consumer’s Glossary of Mortgage Terms.”

* “Your Mortgage Deductions Under the New Tax Code.”

* “How to Shop for a Mortgage.”

* “Consumer’s Guide to Refinancing Your Mortgage.

* “Self-Test: How Much House Can I Afford?”

* “An Educated Homebuyer Gets the Best Deal.”

* “Why Mortgage Escrow Accounts?”

Although all the pamphlets are free, you must include a self-addressed envelope with your request. Importantly, the envelope must have one stamp for each brochure you request: If you wanted, say, four pamphlets, your SASE would need $1.16 postage on it.

You can order the pamphlets by writing to the Mortgage Bankers Assn., 1125 15th St. NW, Washington, D.C. 20005.

Average Rates for Residential Mortgages

Average rates for residential mortgages as of July 26, 1991.

Survey Conventional Mortgages Adjustable Mortgages Area 15 Year 30 Year Composite 1 Year Composite National 9.30% 9.61% 9.46% 7.16% 7.53% California 9.53 9.81 9.67 7.39 7.51 Connecticut 9.28 9.61 9.47 7.14 7.42 Wash. D.C. 9.22 9.51 9.37 6.88 7.34 Florida 9.32 9.62 9.48 7.08 7.40 Mass. 9.27 9.56 9.42 7.06 7.59 New Jersey 9.24 9.55 9.40 7.19 7.72 N.Y. Metro 9.32 9.63 9.49 7.23 7.64 New York 9.42 9.71 9.58 7.29 7.65 N.Y. Co-ops 9.53 9.83 9.76 7.66 8.13 Pa. 9.13 9.43 9.29 7.05 7.30 Texas 9.23 9.53 9.38 7.08 7.36

SOURCE: HSH Associates, Butler, N.J.