November Foreclosure Rates Down, Could This Be A Sign?

December 13, 2008

In November 2008 the foreclosure rate dropped 7 percent. Could this be the beginning of the bottom for foreclosures? Anytime you look at statistics or analyze data you get different answers depending on how much data you look at. In this instance only looking at one month, the month of November would lead you to believe that foreclosures are starting to slow. Look at 3 to 4 months of data and you will find a different answer.

One possibility of the slow down in November is the foreclosure moratorium that Fanni Mae and Freddie Mac have put on repossessions of homes and foreclosures. In an effort to keep more home owners in their homes and slow the foreclosure rate these two, now government owned companies have stopped foreclousre repossessions for a 90 day period.

over 78,000 home owners lost their homes in the month of November. This is an enormous number of people, now out on the street. This is down almost 8 percent from the month of October with over 84,000 home owners loosing their home to foreclosure.

Since the housing market took a steep dive from its peak in August of 2007 over 1 million home owners have lost their house to foreclosure. You can make a claim that many of these people over purchased and that is the reason they are loosing their homes now. The fact is not all of these people can be sub prime mortgage holders and over purchased.

Only the months ahead will let us know if the foreclosures are starting to slow. My opinion is the foreclosure rate will hold steady at an alarming rate until the government can do more to keep people in their homes. When our new american president Barrack Obama takes seat in January lets home real estate is one of the issues he tackles to get our economy back on the right track. 

In the mean time if you own real estate and need to sell your home, I suggest you find a local home buyer in your area. There are still people who are buying new homes, growing their family and starting their life. Everyone wants to own their own home, if not for a long term investment then for comfort.


How Inflation and the Dollar are Hurting Your Chances to Sell Your House

May 14, 2008

Paying a mortgage bill is one of the largest monthly bills the average family faces. When the economy dips into a recession, the mortgage payment can seem increasingly daunting. Our current economic situation couples the recession with increasing gas prices and a falling dollar. What does this mean for your mortgage interest rate, your monthly payments and your house value?

Currently, Fannie Mae is allowing some homeowners to refinance their house if they owe more than what their house is actually worth. How could they have gotten into this situation? The answer is interest rates and the decrease in the value of houses. If the interest rate on the mortgage was variable or subprime, the interest rate and consequent mortgage payments can jump vastly higher than what the actual value of the house is worth. Also in almost all major cities across the nation home prices have dropped, meaning now homes have mortgages that are higher than the value of the house. This move by Fannie Mae is significant because in essence, it means that Fannie Mae is willing to take some loss on the current mortgage loan situation for some homeowners rather than let them default and lose their home entirely.

This move by Fannie Mae may help people in many areas in the nation. Cities like Las Vegas, Stockton California, Detroit Michiga, Boise Idaho and others have seen a dramatic decrease in home prices. The bad news is not all home owners will quialify for the refinance help. In order to qualify you have to meet standerds like good credit, have an certain type of existing mortgage and that mortgage had to be put in place at a certain time.

Homeowners and new home builders are in a pinch. Census data seems to have underestimated the number of new homes that have not been sold and foreclosure rates are steadily climbing. In addition, the inflation rate is growing. This pinch on the everyday homeowner can be significant, causing some homes to question whether they can survive during this treacherous time to keep their home through this recession. With the falling dollar in the market, investors are pulling funds from national banks and putting their money abroad, causing national banks and investments to feel the pinch as well. Mortgage rates are unlikely to spike any time soon, but even a small increase could spell bad news for those homeowners just holding on to making their payments on time and avoiding foreclosures.

What else could possibly affect our mortgage interest rates and the housing market overall? The weak labor market plays a large role in the housing market. The economy is in a virtual hiring freeze, while some companies have already started laying off workers. Job loss has always precipitated trouble in the housing market. In addition, overall job loss in the community makes workers and homeowners scared, limiting the housing sales. Any time the general feeling is to hold onto the house you have instead of try to sell it or take on a larger mortgage payment, we are experiencing a weaker housing market. As employers and workers feel more confident about their employment possibilities, the housing market will improve as well.

Interest rates will be dictated by the Federal Government. In early May 2008, the Fed cut the interest rate, which pushed the 10-year treasury rate up. The 30-year mortgage rate follows the treasury rate, so an increase in the payments due would have accompanied this move in the financial sector. In general, homeowners and workers are trying to maintain what they have instead of pushing to take on something new and stagnant movement like this can spell trouble for mortgage rates.

If you are in a financial situation and thinking how can I sell my house fast, then contact your local home buyer. Every major metropolitan area has professional home buyers that help solve home seller problems. They help people avoid foreclosure, with short sales, sell because of divorce, cash out of investment properties, or sell if you have no equity. So contact your local home buyer and receive a free offer for your house, you have nothing to lose.