With all the news and questions regarding to the Stimulus package I thought that I would expaline some highlights below about President Obama’s praposal.
As we are professionals in this industry we need to make sure we have a clear explanation to that question. Out of the 790 billion plan, 75 billion will be aided to help homeowners on the brink of foreclosure to stabilize their mortgage payment to an affordable level (31% of the household income). Most every lender, including us Countrywide/BofA and put a stop to all new foreclosures and look to work out a resolution with as many homeowners as possible.
Another goal of the plan is to help homeowners, who have a loan owner by Fannie Mae & Freddie Mac, to refinance their mortgage even if the value is not there and they are currently under water. This is expected to help 4 to 5 million homeowners.
One thing I’m expressing to clients is that this will certainly begin to filter out the current inventory of bank owned properties on the market. Less inventory will almost be a start to stabilizing home values and eventually increasing values. So I’m advising clients that have the same we have all heard, “I’m waiting for home prices to fall another 5 to 10%”, that if you wait too long it is already too late. Not only because values have started to rise but because all the good homes have already been purchased. Plus with interest at a very low level and possibly going even lower, NOW is the only time to get moving on something now. (read more about the article CNN.com)
For more information on the San Francisco maket contact James Aduna 415.901.2797 or jaduna@ubayp.com
