Contributed by Carlos Lobato of Coldwell Banker Residential Real Estate's Miami Lakes office.
Last week the president announced the long awaited 'mortgage settlement' in which 49 states (minus Oklahoma) will be participating in. Essentially 5 of the major banks will be given cold hard cash to help them "make amends" for their past misgivings and trespasses. For starters, the program will provide up to $2000.00 for homeowners that were expeditiously foreclosed on using so called robosigning techniques and practices. Really? A whole two grand? What consolation is this when you've lost your home?
In addition to this a good chunk of the settlement will be used for a combination of modifications, rate reductions, and principle reductions. While for the fortunate homeowner that happens to qualify for any of these remediation, this could be the saving grace that saves their home, their finances or even their family; the fact of the matter is that when all is said and done only 1 in 10 will be helped. And while any assistance to responsible homeowners and/or victims of questionable foreclosure practices in certainly welcome, we must realize that a healthy housing market is an absolutely essential component of our broader economic recovery. In this age of austerity, spending freezes, and well-justified concerns over trillion dollar deficits I can certainly understand the hesitation to "go big". Yet going big is just what the severity of our circumstances requires at this time. If only our politicians would get out of the way...
To read more of Carlos' thoughts and feelings on real estate, from market trends to practical advice for buyers and sellers, as well as personal experiences out in the field, go to his "Bits About Real Estate" blog.