The American Government in the Real Estate Business

The American Government in the Real Estate Business

Okay, so just imagine it!  Our American Government (who has already gotten into the automobile industry, the banking industry and the list goes on and on...) has started the discussion of rental homes.  Ben Bernancke has 'suggested' that we start a nationwide government supported "REO" rental program.  I'm really trying not to preach politics here, so I'll just stop at that.

Some proponents suggest the rate of return by renting these homes out for now would be much greater than the prices at which they have been selling on the real estate market right now.

Those against it suggest that home ownership should be promoted during this time and not discouraged as they feel this program would do.  Not to mention the fact that the taxpayers, lenders and bond investors would bear the burden of this cost.  Another bail out in the making.

Some of the things they don't ask are, how do you rent an REO where there is major repair work to be done?  Who is in charge of that and who pays for it? There are many more questions I can pose here and I'm sure you are thinking of a few yourself.

You can read more about the topic HERE on HousingWire.

If you are interested in buying or selling or simply have questions about real estate, please feel free to contact me.  I will be more than happy to assist you!

Warmest Regards,
Linda K. Mayer,
Realtor, Office Manager  
License # 01767321
A Realtor you can Trust!
(626) 824-8927 Cell
(909) 670-2711 Direct
LindaKMayer@live.com
Linda's Website

2011: A Year of foreclosure, Strategic Defaults and Much More

2011: A Year of Foreclosure, Strategic Defaults and Much More

Okay, so I was reading this article on the HousingWire.  Here is a quote from the first paragraph, "RealtyTrac is calling 2011 the year of foreclosure litigation, strategic default, failing foreclosure law firms and shadow inventory."  Kind of interesting, if you ask me.  Foreclosure litigation... who would have ever thought!

I mean, really, if you get foreclosed on, it's for a good reason like you didn't keep up your end of the contract, right?  But with banks failing right and left and other loans being sold and transferred (and not properly, I might add) without signatures or other processes, there have been many mistakes made.  One that comes to mind is the neglect of the banks to transfer all loans into their own names - Countrywide to Bank of America comes to mind. Those deeds never were re-recorded, so does that make them invalid?  Some courts say yes and others say no. 

Let's take strategic default.  Some would say that the house the own has a loan that is much higher than what the property itself is worth now.  For some of those folks, they have chosen not to make their payments to get out from under a home that isn't worth the money.  Others have said, "A deal is a deal" and know that the loan they got was/is a valid contract according to the time and value of the original contract.  This has caused more of an issue with lenders as some are allowing the strategic defaults to become short sales and not foreclosures.  It kind of reminds me of a parent allowing bad behaviors and then saying it wasn't their fault. 

A lot of law firms specializing in foreclosure and modifications have gone by the wayside.  Modifications are few and far between now and since there is legislation that doesn't allow for charging a fee up front, many agencies have stopped doing modifications all together.  It puts a damper on any business when they lose a line of product and the money it generates. 

This article was really interesting with more detail and subtleties than I have time for in this blog.  You should really click on the link above and read about it for further information. 

In the meantime, I wish you and your loved ones a marvelous New Year.  Here's looking to the new and exciting prospects this brings!

Warmest Regards,
Linda K. Mayer,

Realtor, Office Manager  

License # 01767321

A Realtor you can Trust!

(626) 824-8927 Cell

(909) 670-2711 Direct

LindaKMayer@live.com

Linda's Website