Today from Inman News: "A coalition of lenders, loan servicers and investors have reportedly agreed to a plan that would freeze interest rates on some subprime mortgage loans for five years."
Although the official announcement will come tomorrow (Thursday, Dec. 6th), I anticipate the media will pick up on this as good news for troubled borrowers. Let's face it, real estate has taken a beating in the media lately and it will be nice to see positive news reported.
This plan will only help a select few, but the perception in most people's minds will be very positive. It may actually mean that some homes will not hit the market due to the foreclosure process or because the bank took back the property. Why? Because these people will be able to retain their home and not artificially flood the market with properties for sale. While I'm not overly optimistic about the short term recovery of the real estate market, a gradual reduction in inventory will help sellers and may help motivate buyers to see what great opportunities there are in the market TODAY!
Although the official announcement will come tomorrow (Thursday, Dec. 6th), I anticipate the media will pick up on this as good news for troubled borrowers. Let's face it, real estate has taken a beating in the media lately and it will be nice to see positive news reported.
This plan will only help a select few, but the perception in most people's minds will be very positive. It may actually mean that some homes will not hit the market due to the foreclosure process or because the bank took back the property. Why? Because these people will be able to retain their home and not artificially flood the market with properties for sale. While I'm not overly optimistic about the short term recovery of the real estate market, a gradual reduction in inventory will help sellers and may help motivate buyers to see what great opportunities there are in the market TODAY!
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