It seems that as the economic situation in this country is still a bit on the scary side, more and more people, media, companies and politicians recognize that the housing market is the key to a stable economy.
Houses are an investment that people can really relate to them. You can touch a house, you can clean a house, you can demolish a house. Unless you are Bear Stearn, it isn’t quite so easy to demolish a stock.
So Fannie and Freddy are getting presure put on them, and in turn are pressuring companies such as Wells Fargo to make deal with homeowners to keep them in their homes. The latest article I read today was that they were looking at doing loan workouts that dropped the monthly payments of properties to 38% of the property owners income. That is historically where the banks wanted payments to be in order to loan money.
How this is really going to work is anyones guess. What happens if the homeowner is one of the thousands of people who have lost their jobs? 38% of nothing is ?????? nothing?
The good news is that the banks/politicicans recognize the problem. They are listening to the Realtor association about what us professionals have found to be the kinks in how they are trying to solve problems.
If you are a homeowner at this point who is having problems paying your mortgage…hang in there. There look to be some workout options around the corner.