We offer qualified house buyers that pay cash or can submit multiple offers. Servicing Houston Texas, contact us at 1-832-377-0358 begin_of_the_skype_highlighting              1-832-377-0358      end_of_the_skype_highlighting.

New Federal Foreclosure Help

February 12, 2008

in Community Blog

new federal foreclosure help
Will housing sector rebound with Fed decision to provide assistance to subprime borrowers?

With the Fed’s announcment recently that they will have a new program that will provide help in refinancing loans to potentially millions of mortgage borrowers that are facing the possibility of foreclosures.

Do you think this will be the relief the housing sector needs to rebound?

No. The housing sector is still in a massive corrective state stemming from unbelievable mortgages over the past few years.

In 2003 the feds lowered various benchmark rates to keep us out of a recession. It worked. However the housing market went out of whack due to bad/hybrid loans that got more people into homes they shouldn’t have been able to afford. But markets have a way of correcting themselves and that is what we see happening right now.

Keep in mind the vast majority of mortgages are NOT in default. We are talking about a small sampling of home owners that are having troubles – mostly in the subprime arena. But the media frenzy surrounding this issue has caused people to pause before buying a home. Many are waiting to see what happens with the economy as a whole. Others are wary of home values (past and future). Unfortunately this has caused a glut of unsold homes. It is not due to the rates as they are basically the same as they have been for the better part of 2 years.

We won’t start climbing out of the housing mess until next spring at the earliest. It may mean rates will go lower so refinances may get a boost. In the meantime remember this about homes: their values are holding steady, their prices are still fluctuating.

Leave a Comment

Previous post:

Next post: