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SACRAMENTO --Serious homebuyers and investors take note: Don’t fret recession
talk and dismal foreclosure and mortgage delinquency numbers coming from the experts.
It’s time to get off the fence and buy!
“Today’s market could be the opportunity of the decade--and even decades
to come--for the average person to pick up affordable housing at cut-rate prices,“
says Alexis McGee, president of and co-founder of ForeclosureS.com (www.foreclosures.com),
California-based foreclosure and property information analysts and publishers. ”Homes
today are available at discounts of 20, 30, and 40 percent off retail prices in
some areas; choices are abundant, and inexpensive, reliable financing is now available,
thanks to new higher Federal Housing Administration and Fannie Mae loan limits,”
adds McGee, author of the Foreclosures.com Guide Series:
Advanced Investing Techniques You Won't Learn Anywhere Else (Wiley 2008),
and Investing in Pre-foreclosures Without Selling Your Soul (Wiley 2007).
Even the Mortgage Bankers Association on March 6th reported record mortgage delinquency
and foreclosure rates, points to a slowing foreclosure spiral. However, new foreclosure
starts year over year and quarter to quarter were relatively flat in Michigan, Ohio,
and Indiana, states with the highest percentages of loans in foreclosures.
Could the downturn have hit bottom? “That’s anyone’s guess,”
says McGee. “But clearly our government has taken essential steps to allow
the market to recover in a way that stimulates the economy, keeps interest rates
affordable, and helps buyers, sellers, and investors, alike.” For example:
- Last week Senate Republicansblocked consideration of the “Bankruptcy Cram
Down” bill that would have allowed bankruptcy judges to modify the mortgages
of troubled borrowers to help them avoid foreclosure. “Cram down would have
undermined investor confidence in secondary markets where mortgages are bought and
sold, resulting in higher interest rates and larger down-payment requirements,”
adds McGee.
- The temporary increase in loan ceilings for FHA-insured loans and Fannie Mae loans
mean the average person now can access affordable, safe insured loans. “Until
now, homebuyers in high cost of living areas had been priced out and forced to look
to creative expensive mortgage financing options,” adds McGee. (Check out
the loan ceiling for your area, http://www.fhaoutreach.com/)
- U.S. District Judge Paul L. Friedman filed a preliminary injunction temporarily
barring HUD from enforcing a ban on seller-financed down payment assistance programs.
That injunction gives investors another tool to sell houses in today’s market
and ensures the continuing operation of nonprofits like
nehemiahcorp.org tohelp with down payment assistance for families.
But for others already trapped by soaring mortgage payments and looming foreclosure,
it’s not enough. Despite talk that the number of overextended homeowners helped
by lender workouts is up, so are serious mortgage delinquencies and foreclosures.
Industry claims aside, homeowners facing foreclosure simply aren’t getting
the workout assistance they need from lenders and industry, adds Bruce Marks, chief
executive of Boston-based Neighborhood Assistance Corporation of America, a nonprofit
foreclosure prevention counseling group (www.naca.com).
Hopefully, that will change as interest rates continue dropping and home prices
rebound as expected later this year, adds McGee.
About ForeclosureS.com: Sacramento-based
ForeclosureS.com, the source of foreclosure
property information for professionals for more than two decades, has more than
3.5 million listings of current foreclosure filings covering nearly 1,600 major
U.S. counties. And coming soon: the new, expanded ForeclosureS.com database.
Media Contact:
Sofia Gutierrez, ForeclosureS.com, 916-860-1190
or sofia@halldinpr.com
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