With the news that there are foreclosure freezes from several banks due to paperwork issues, I applaud those banks that took the initiative to halt the process and evaluate the issues. As a real estate consultant, I am glad to see there are banks caring about issues before they become problems, in the same proactive way I conduct business.
So what does this mean to you and me, the everyday people feeling the effects of bank bailouts and tough economic times?
- There eventually will be a back log of properties that will come on the housing market. This back log may adversely affect real estate prices, again.
- There is a possibility that current properties that are Bank Owned (aka Real Estate Owned, Foreclosed) will be delayed in closing due to paperwork backlog.
- Homes that are Short Sale are NOT affected by this freeze. Short sales are a totally different process and are not combined in the freezing process.
As Jerome Idaszak from Kiplinger.com states, "The only sure cure is time. The question is, how painful will it be to get from here to there." I could not state it any better.
With interest rates so darn low, and with a tough economy, we all need a breath when it comes to money, so it may be advantageous to refinance your mortgage.
I recently discovered Easy Home Refinancing products that allow you to refinance with very low closing costs. Each mortgage bank is different, so check with the banks about their various offerings. If you are plan to stay in your home for a while, this may be a great option for you to save big money over the long haul. And you can use the extra cash to:
- Pay down on your principle
- Save for a down payment on a new home
- Save for your child's education
- Go out to eat more often
- Take a vacation
It is definitely worth the time to explore how much you can save by refinancing.
Lawrence Yun, Chief Economist of the National Association of Realtors®, has said that new/more jobs are in need to drive home sales. It is a call for businesses to take the reins and stimulate the economy. So what is the stall to seeing this emergence of new/more jobs? According to Yun’s article, “uncertainties about the economy and the new federal policies that affect businesses” is causing the stall.
What can we do to assist in driving a more stable economy this election season and bring back the housing market? Take a look at the candidates and what they support. Be critical of the campaign and the issues that candidates take a stand on. I really believe it is vitally important to know what is needed to get us going in the right direction for the economy.
Understand the Issues.
Becoming aware of who you support.