Bailout - A Good Idea or A Bad Idea?
May 21, 2008
There have been numerous news articles chronicling the House and Senate passage of "bailout" legislation for lenders, and homeowners. President Bush announces that he will veto any of these proposals. There are editorials being written both pro and con. On my part, I read as much as I can and listen to the TV and radio interviews. Thus far I am unable to discern exactly what is proposed and why any legislation will be good or bad in either the short term or the long term.
Having exposed my ignorance, I recognize that the foreclosures being processed do seem scary.
For the past year and a half I have been tracking, through Dataquick, the number of Notice of Default, the number of Notices of Trustee's Sale (This is what is published in the newspapers.) and the R.E.O.s (Those properties that have actually foreclosed and are now owned by the lender.) I have only been following this data for the City of Redlands, CA as that is my primary real estate market area.
Certainly the numbers have increased. One has only to glance at the local newspapers to view the columns and columns of Notices of Trustee's Sale. I do not know how many of the Notices of Default actually arrive at this place in the foreclosure process, but many never do. Also, some portion of those published for trustee's sale also never actually foreclose. Hopefully, those homeowners who really want to retain their ownership will be able to do so.
Some of the methods being pursued by real estate professionals, both lenders and sales agents are renegotiating, a freeze on rate adjustments, a refinancing with a different loan, and other individually worked out methods. Interest rates have not risen dramatically; only the rates on the adjustable that had a "teaser" start rate.
This is not the first downturn in which borrowers owe more than the present value of their home. The key to staying out of the foreclosure process is wanting to keep your property. While the Senate bill suggests that it will keep 500,000 folks in their homes, it remains to see the actual steps that are authorized to do so. For those under a threat of foreclosure, there are resources that are being put in place now. Stay tuned for more info.
There have been numerous news articles chronicling the House and Senate passage of "bailout" legislation for lenders, and homeowners. President Bush announces that he will veto any of these proposals. There are editorials being written both pro and con. On my part, I read as much as I can and listen to the TV and radio interviews. Thus far I am unable to discern exactly what is proposed and why any legislation will be good or bad in either the short term or the long term.
Having exposed my ignorance, I recognize that the foreclosures being processed do seem scary.
For the past year and a half I have been tracking, through Dataquick, the number of Notice of Default, the number of Notices of Trustee's Sale (This is what is published in the newspapers.) and the R.E.O.s (Those properties that have actually foreclosed and are now owned by the lender.) I have only been following this data for the City of Redlands, CA as that is my primary real estate market area.
Certainly the numbers have increased. One has only to glance at the local newspapers to view the columns and columns of Notices of Trustee's Sale. I do not know how many of the Notices of Default actually arrive at this place in the foreclosure process, but many never do. Also, some portion of those published for trustee's sale also never actually foreclose. Hopefully, those homeowners who really want to retain their ownership will be able to do so.
Some of the methods being pursued by real estate professionals, both lenders and sales agents are renegotiating, a freeze on rate adjustments, a refinancing with a different loan, and other individually worked out methods. Interest rates have not risen dramatically; only the rates on the adjustable that had a "teaser" start rate.
This is not the first downturn in which borrowers owe more than the present value of their home. The key to staying out of the foreclosure process is wanting to keep your property. While the Senate bill suggests that it will keep 500,000 folks in their homes, it remains to see the actual steps that are authorized to do so. For those under a threat of foreclosure, there are resources that are being put in place now. Stay tuned for more info.
posted by shirley harry at 8:14 AM
1 Comments:
Great article!
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