Foreclosure News

Editorial: Halting Foreclosures Harms Markets


Considering that banks handed out mortgages like jelly beans during the height of the real estate bubble, the latest housing news is quite predictable: Major lenders, including JPMorgan Chase and Bank of America, have suspended foreclosures in parts or all of the country because of sloppy paperwork and improper oversight of the avalanche of loans that went bad.



So, for now, some beleaguered home owners will be spared the misery of losing their homes. Further, banks will be forced to comply with the law and follow their own procedures, as they should be. People will get due process. But despite the revenge-of-the-downtrodden theme, the latest home loan fiasco seems destined only to make the nation's housing problems worse. That will be especially true if lawsuits, investigations and calls for a nationwide moratorium on foreclosures cause the entire process to grind to a halt.



There is still scant evidence that borrowers who are current in their payments are being mistakenly targeted for eviction. In the end, those who cannot afford their houses will probably still lose them — only the process will now be dragged out, preventing the real estate market from arriving at two things necessary for a recovery: a bottoming out of prices, and a sense of certainty that the market is functioning properly. Some previous buyers of foreclosed homes might even face title claims.



Even buyers and sellers that have never been in foreclosure have an interest in seeing the process start working again. Without a functioning foreclosure system, mortgage lending will continue to be sluggish, and so will the overall economy.

Home Buying Interest is Up

Even in Frugal Times, Home Buying Interest Up


A survey of U.S. adults in September finds that many people continue to be very conservative about how they spend money.



The findings conclude:



· About 17 percent say they expect to have more money to move to a different home. That percentage is virtually unchanged since May 2009.



· Those who expect to buy a new house or condo are up from 7 percent in May to 10 percent in September.



· Those who expect to buy a boat or RV have doubled from 3 percent to 6 percent.



· About 10 percent expect to start a new business next year, compared to 6 percent who said they planned to do so this year.



· About 52 percent of all adults say they expect to save or invest more money, the same answer from the same percentage of respondents over the last two years.



Source: Harris Interactive (10/04/2010)

I have found this to be true in our area.  Working in the Macomb and Oakland County areas the interest in home buying is up from this time last year.  More families are seeing the opportunities in the market to get a great buy with history making interest rates.

If you are thinking of buying or selling or have other real estate needs, please feel free to give me a call.