Making Home Affordable Program

President Obama announced the Home Affordable Program (MHA), designed to help up millions of families to avoid foreclosure by restructuring or refinancing their mortgages. The plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from declining, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

For more detailed information,
visit MakingHomeAffordable.gov

WHAT IS A SHORT SALE?

A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

WHY IS THE NUMBER OF SHORT SALES RISING?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.

Real Estate Articles

September 2011

October 2011

FOR EVERY ACTION THERE IS AN EQUAL AND OPPOSITE REACTION

In Physics, Isaac Newton’s third principle of motion states that: “For every action there is an equal and opposite reaction”. If you were to release A pendulum from Point A, it would swing past its normal stationary Point B and end up close to Point C on the opposite end of the curve.
    
This  fundamental principal also can be applied to the Laws of Real Estate to help identify the most desirable times to buy. Prices at the height of the market could be viewed as being at Point A. They were too far off to one side (Point A) because they were based on artificial demand.
   
Newton’s 3rd Law of Motion, applied to human behavior in Real Estate, would dictate that the normal consequence of the Pendulum being at Point A, would be an overcorrection with prices moving too far in the opposite direction (Point C – prices too low). Eventually the market will lose its momentum and balance out at Point B – normal prices.
   
In the meantime, it’s an ideal time to buy because the glut of inventory and distressed property prices designed to absorb excess inventory has moved the pendulum too far to the “Low Price” (Point C) direction.  Take advantage of this opportunity while it lasts. Like the Stock Market, the pendulum eventually loses its momentum and ends up back in a balanced position.
 
Also, like the Stock Market, prices in real estate could recover very quickly. Buyers and investors should keep in mind that prices for real estate in most areas have always recovered and reached their pre-recession highs. The time to buy is before this happens and when there still is a great selection of “A” properties left.