Lenders may rent foreclosures and sell later
The Obama administration is considering a plan that would take foreclosed homes off the market and rent them out--in a move aimed at clearing the glut of unsold foreclosed homes and preventing home values from falling any more, The Wall Street Journal reports. Read the rest here:
Keep your nose out of it! You have done nothing to help the housing market. Last year’s $8,000 tax credit stimulated the market. The real estate market was artificially heated, and pushed a glut of buyers into housing and then after the expiration the market cooled.
If I may make a few suggestions:
1) Buyers want to purchase homes, don’t hold back on the inventory, if the market needs to take another dip, so be it. It isn’t working by artificially propping up the real estate market.
2) Instead of holding back on listings, add to the buyer pool by making it easier for qualified applicants to get loans. I have many self employed clients that can’t get loans even though they have large down payments and excellent credit. It is smart to loan money to people with 30% down payments and good credit and not be too concerned about tax returns and verifiable income. It was stupid when banks did it for buyers with bad credit and no down payment.
3) Move the foreclosures by offering special financing for private investors – just average Joe’s. Maybe they could pick up a rental property at today’s low prices. I have lots of clients who would love to purchase an investment property, but the bank’s lending policies make it nearly impossible to qualify for a non-owner occupied loan. Ease up for qualified buyers, those with good credit and large down payment.
4) Oh, one last thought, why not help underwater homeowners who are making their payments? Allow them the opportunity to take advantage of today’s lower interest rates. Many can’t refinance in order to lower their monthly payment because they don’t have sufficient equity. But they have been making their payments. What a novel idea for us to consider lending a hand to those responsible homeowners who are making their payment every month. Read more about real homeowner stories here
It’s all about supply and demand, increase the buyer pool, it’s really that simple. Buyers want to buy, get the homes on the market. And please keep your nose out of real estate; you have done nothing yet to help.
Related Posts: The mortgage lending conspiracy
Real estate drama lender style
Another recipe for mortgage failure
Keep your nose out of it! You have done nothing to help the housing market. Last year’s $8,000 tax credit stimulated the market. The real estate market was artificially heated, and pushed a glut of buyers into housing and then after the expiration the market cooled.
If I may make a few suggestions:
1) Buyers want to purchase homes, don’t hold back on the inventory, if the market needs to take another dip, so be it. It isn’t working by artificially propping up the real estate market.
2) Instead of holding back on listings, add to the buyer pool by making it easier for qualified applicants to get loans. I have many self employed clients that can’t get loans even though they have large down payments and excellent credit. It is smart to loan money to people with 30% down payments and good credit and not be too concerned about tax returns and verifiable income. It was stupid when banks did it for buyers with bad credit and no down payment.
3) Move the foreclosures by offering special financing for private investors – just average Joe’s. Maybe they could pick up a rental property at today’s low prices. I have lots of clients who would love to purchase an investment property, but the bank’s lending policies make it nearly impossible to qualify for a non-owner occupied loan. Ease up for qualified buyers, those with good credit and large down payment.
4) Oh, one last thought, why not help underwater homeowners who are making their payments? Allow them the opportunity to take advantage of today’s lower interest rates. Many can’t refinance in order to lower their monthly payment because they don’t have sufficient equity. But they have been making their payments. What a novel idea for us to consider lending a hand to those responsible homeowners who are making their payment every month. Read more about real homeowner stories here
It’s all about supply and demand, increase the buyer pool, it’s really that simple. Buyers want to buy, get the homes on the market. And please keep your nose out of real estate; you have done nothing yet to help.
Related Posts: The mortgage lending conspiracy
Real estate drama lender style
Another recipe for mortgage failure
Posted by Phyllis Harb at 7/23/2011 2:07 AM 
Categories: All about Money, Foreclosures, Lenders
Tags: lenders may rent homes out and sell later
Categories: All about Money, Foreclosures, Lenders
Tags: lenders may rent homes out and sell later
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