Friday, November 18, 2011

5 ways to help real estate market recover.

We are now full swing into the Fall housing market and the same questions continue to linger. Have we reached bottom? When will the housing market improve? Will government intervention get the housing market back on track? A think tank of industry leaders, lawmakers and policy strategists came up with the following suggestions to help the recovery -

1. Appraisal-free refinancing for underwater borrowers so home owners can take advantage of the current low interest rates.  Talk to your lender - I have heard of several clients who were successfully able to renegotiate their rate without an appraisal.

2. Shared equity refinancing - where the lender may impose certain restrictions on resale within the initial terms of the new mortgage where both the bank and the homeowner have skin in the game.

3, Assumable government backed loans - The new buyer can assume the loan from the seller, which makes buying today more appealing because interest rates are sure to rise - so locking in today's rates for the next buyer down the road.

4. Investor foreclosure purchases - Currently the foreclosures encourage buyers who will be using the property as their primary residence.  While maintaining that - opening up investor participation may help offload the foreclosure inventory faster.

5 National servicing standards - Simplify and unify servicing standards across states, so lenders can streamline their operations instead of having to deal with different servicing rules in every state.  They can focus instead on the homeowners.

Read the full article at Realtor Magazine.

What are your thoughts?  Do you have any suggestions for the think tank?  How can industry leaders and lawmakers help you?

Bela Vora, REALTOR®, 
Coldwell Banker Preferred - Exton
Office: 610 363 6006; Cell: (484) 947 3127
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