Chicago's North Shore - North and Northwest Suburbs Real Estate Archive

Blog

Displaying blog entries 1-2 of 2

More Foreclosure Fallout

by Allyson Hoffman

Recently, another controversy in the mortgage industry has drawn attention. This time it is regarding the falsification of documents and affidavits used in foreclosure proceedings. With the nation’s top lenders freezing foreclosure activity while investigations continue, some of the newest victims are buyers and Realtors of distressed properties. Foreclosures create a significant book of business for home sales in hard hit areas – as much as 30% or more of the sales market.

Home sales this past summer hit the lowest levels in ten years, and in some markets, like Florida and Nevada, the active housing market is full of foreclosures. The uncertainty is also causing chaos for all home sales. Experts tell us that home prices could bump up slightly on the short term, but that a glut of foreclosed properties post-freeze will hurt the general status of the market in the long run.

While some markets are obviously hit harder than others, the moves by some of the nation’s largest lenders – Bank of America, Chase, Ally Financial and GMAC Mortgage is systemic, now affecting proceedings in all 50 states. Fannie Mae has responded by pulling foreclosed homes off the market and many title companies are refusing to issue title policies, making the homes unsellable.

Widespread investigations at either a state or national level will further paralyze a market that already shows few signs of life. Foreclosed home sales at least pump money into the market and generate real estate activity. The foreclosure inventory competes directly with new construction and if both inventories rise or stay unchanged, the construction industry will effectively shut down in some areas.

Mark Zandi, chief economist at Moody's Analytics, noted that today’s latest crisis is likely to have an impact for the next two years. "It'll probably push out the distressed sales into 2011 and 2012," he said. Delays of large foreclosure inventories will slow long term recovery.

Additional market uncertainty will keep more hesitant buyers on the fence as they wait to see what foreclosed homes might be coming back on the block. Prolonged delays in getting foreclosures moving again can also hurt long-term prices and futures as investors will look to other markets.

 

/kh

 

Fending Off Foreclosure - What Alternative Will Work For You?

by Allyson Hoffman

 

It is no secret that foreclosures have increased drastically this year as a result of the subprime lending disaster and a lot of people are wondering if they will be next. For many homeowners there may be options, if they know what to look for and where to look. 

In the event that you find yourself struggling to make your mortgage payments, and you fear foreclosure may be in your future, the National Foundation for Credit Counseling (NFCC) has suggested a few possible alternatives. These options to fend off foreclosure include:

 

  • Repayment Plan
  • Reinstatement
  • Forbearance
  • Loan Modification

The Federal Trade Commission wants people to know that these alternatives may not work for everyone especially if you are already three or four mortgage payments behind.

For more information regarding the above alternatives visit the NFCC's Homeowners Crisis Resource Center website. They can also assist you in locating a certified housing counselor to explore your options in an effort to fend off foreclosure.

Image courtesy 24oranges.nl/Flickr.com

 

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Allyson Hoffman Real Estate
Allyson Hoffman
RE/MAX Villager
1245 Waukegan Road
Glenview IL 60025
847-310-5300
Fax: 847-400-0881

Listing Alerts

Be the first to know what's coming up for sale in the Chicago Illinois real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Quick Search

Contact Us

There are several ways to reach me. Call me at the number below for the quickest response or click the Contact us Online button. Thank you.

Allyson Hoffman
RE/MAX Villager
1245 Waukegan Road
Glenview, IL, 60025

(847) 310-5300
[email protected]

Contact Us Online