I had to write on President-elect Barack Obama’s inauguration tomorrow. With this history changing event, here’s hoping that the new administration will take corrective measures to fix the troubled housing market.
During Obama’s campaign, he spoke about making the housing industry one of his top priorities once he was elected into office. He knew that homeowners have lost 20 percent of the value in their homes and they were having a hard time keeping up with their mortgage payments. He campaigned on helping homeowners stay in their homes and trying to avoid raising taxes.
One of his goals was to instruct the secretary of HUD and the secretary of the Treasury to to modify mortgage terms, create a universal tax credit, and make sure that loan disclosures were completely accurate.
Realtors are finding that one of the problems keeping inventory levels up is the delay many banks have to negotiate offers on homes that have already been foreclosed on or are in short sale situations. So if banks moved a little quicker and didn’t sit on hot offers, the market might turn around in a faster manner and we could move some of the inventory out.
The National Association of Realtors is hoping that Obama will also focus on the stimulus plan that includes conforming loan limits for areas with higher housing costs, homebuyer tax credits (not just for first-time buyers), and a federal buy down of mortgage interest rates.
Obama spoke to Realtor magazine in the fall and said that he wanted to create a $10 billion foreclosure prevention fund that will help homeowners facing foreclosure to renegotiate their terms with their current lenders or list their homes for sale.
Analysts are predicting that with the new Obama administration and Congress being controlled by the Democrats, that Washington will begin to focus on reform in the housing industry. Here’s hoping!!
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