Wednesday, February 24, 2010

Fewer People Behind on Home Loans

Experts tell us, the end of the foreclosure crisis is finally in sight. This is good news indeed for the real estate market in Tampa, Florida. “Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research in a FloridaRealtors.org News and Events article titled Fewer People Behind on Home Loans. Jay Brinkmann, the trade group’s chief economist added the figures probably mark “the beginning of the end” of the crisis.

In an effort to bring some relief to homeowners who are experiencing problems with their mortgage payments, the Obama administration’s $75 billion mortgage-relief effort is underway. All borrowers who are experiencing problems with their mortgages may not qualify for help under this plan, but it is a big step in the right direction for many homeowners.

In addition to the $75 billion mortgage-relief effort which lowers payments and extends mortgage loan terms, President Obama has also stated that Arizona, California, Florida, Michigan and Nevada will receive $1.5 billion in financial rescue money as these states have been hit extremely hard in this foreclosure crisis. This money “will go to local programs to help unemployed homeowners, under water borrowers who owe more than their home is worth, or to give lenders incentives to assist borrowers with second mortgages. The programs will need to be approved by the Treasury Department.”

Combine the fact that the number of homeowners falling behind on their loans is declining for the first time in three years, the $75 billion mortgage-relief effort is underway, and the Obama administration has implemented $1.5 billion in rescue money to hardest-hit states for relief programs and there starts to be some light at the end of the tunnel for this foreclosure crisis. There is no doubt that It will still take time for the real estate market to continue on its path to full recovery, but many of the indicators are that the real estate market is stabilizing. This is evidenced by the amount of activity and true transactions that SI Real Estate has handled in the Tampa Bay area since mid-2009.

No comments: