Homeowner Bailout, Round 2?

 

11 million Americans are underwater in their mortgages.  That’s roughly 1 in 4 homeowners.  How about another government bailout to help?

The Obama administration is pulling a lever or two so this nasty problem should be fixed just in time for the election, right?  Didn’t they try something like this before or did that just not work last time?

There are several reasons why we believe it won’t work this time either.  The Republicans will be blocking it.  Then there’s that persnickety problem of exactly where will the money be coming from.

 

Here’s the main article from Bloomberg, plus several more interesting takes we’ve found across the net.

Obama Wants To Expand Government Reach Of Federal Assistance

Spencer Bachus, R-Ala., chairman of the House Financial Services Committee, said the refinancing plan proposes “to get out of the hole we’re in by digging deeper.” “He wants lenders to make more of the same risky loans

Publish Date: 02/01/2012 17:52

http://newsone.com/nation/associatedpress6/obama-government-housing-assistance/

Geithner: More Fannie reform details in spring | Hot Penny Stocks

By Ronald D. Orol , MarketWatch WASHINGTON (MarketWatch) — Treasury Secretary Tim Geithner on Thursday discussed some of his goals for financial reform in 2012, including a plan to provide more details in the spring about the He said the Federal Housing Finance Agency, Fannie and Freddie’s regulator, is “still open to examining the economic case” for reducing the principal owed by borrowers who have mortgages owned by the two mortgage giants.

Publish Date: 02/02/2012 16:33

http://www.hotpennystocks.co/wall_street/top_stories/geithner-more-fannie-reform-details-in-spring/

 

 

 

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Housing Sales: Really Bad News for July

July housing sales are in the toliet. Why? What’s next with hop and change?

Housing Sales for July

Housing sales took a nose dive in July, according to the numbers crunch.  I’m using Nashville as an example because that’s the real estate market I am directly involved in and I know it all too well.

The last year has been very difficult for us as landlords.  We’ve had a huge turnover in tenants; much larger than usual.  We’re still getting 30 day notices, which is very strange for this time of year.  Usually, the season starts to wind down along the middle of August.

The article from the Tennessean sums it up.  The Obama tax credit for first time homebuyers is gone.  The article further points out  those  new homebuyers have already bought.  That means houses were sold earlier this year and sales are not being spread out over the remaining months of 2010.

I won’t criticize the Obama tax credit.  I’ve already done that ad nausium.  But I will say this.  You can’t keep on interfering with the markets.  I don’t think you can tweak and play with the real estate market, or any market for that matter without causing further damage. 

The important thing is to look to the future.  What can we expect?  More of the same, perhaps?

I am guessing there won’t be any more stimulus for first time buyers.   It will go the way of the clunkers for cash program, thank goodness.   What I do see as a possibility is that the Team Obama will now turn to Freddie Mac and Fannie Mae distressed homeowners and will give them some sort of bailout.  I didn’t think that was conceivable a few weeks ago.  I now know anything can happen with this White House.

That will be cataclysmic.  Homeowners who are paying off their mortgages will think it isn’t fair and why should they keep on struggling?  One suggestion is to bring hope and change to Freddie and Fannie in the form of a complete makeover.

Still, I’m generally optimistic.  I think once we’re past the New Year, things will improve.  Real estate will make a comeback.  It always has.  That is what keeps me going.  I know the cycle will turn.  But I think the government ought to leave these markets alone now and let the chips fall where they will. 

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Fannie Mae and Freddie Mac Bailouts: Will Obama Really Bail Out Upside Down Mortgages?

So Obama is planning to bail out Freddie Mac and Fannie Mae? Where will the money come from?

Fannie Mae and Freddie Mac Bailouts where Obama may be aiding distressed homeowners has Washington buzzing today.  Granted the rumors are wild, and we never thought the government would actually do it. However, some folks are reporting there is a strong  possibility Obama will try to forgive some Freddie and Fannie debts.

What does this mean?

We believe it’s political.  He’s trying to aid distressed homeowners who got on the wrong side of the real estate cycle.  But hey, people do that all the time.   They over invest or they invest in the wrong real estate at the wrong time.  Does that mean our tax dollars should be used to bail them out?

Most importantly, exactly where will this money be coming from?  They’re having to look underneath the couch cushions now for coins.

Read Obama’s  Freddie/ Fannie Bailout

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Sales Tax on Real Estate Sales? Say It Isn’t So!

There is a rumor being reported by the Washington Post that there will be a sales tax on real estate sales beginning in 2013. We hope this isn’t true, but with the craziness epidemic it probably is.

There is a rumor being reported by the Washington Post that there will be a sales tax on real estate sales beginning in 2013.

Of course, those of us worth  less than $200,000 don’t have a thing to supposedly be worried about.   Those of us over $200,000 do have something to worry about.

So what’s happening?

The money will be going for the new ever so complicated health care system.   And it isn’t being called a sales tax, you see.  It is really a Medicare tax, as if that will make any difference to the taxpayer. 

I just love this quote:

“Of course, the Washington area has experienced dramatic appreciation in real estate (at least in recent years), so some homeowners may be hit with this new tax. But the large profit that has been made should offset the nominal tax that has to be paid.”

Funny, how some people believe taxes can be offset.  It’s also funny how property taxes that we’re paying in Davidson County, TN  have not been off set.  They’re coming straight out of our profits.

Anyway, read Fact or fiction? The health-care law and real estate tax

Small Homes Gain Popularity

Smaller homes are making a comeback in the new real estate markets. Find out more about what’s going on.

A large home with complex rooflines under cons...
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Small  homes are gaining in popularity according to the Ottawa Citizen.

New homebuyers are thinking smaller because of land costs and the fact that McMansions are losing luster.

Reasons: Wasted space =wasted costs.  Economizing is in now and buying a huge home just to keep up with your neighbors is not as thrilling as it once was.

Small is the New Big

The Wall Street Journal is also picking up on this trend in Florida.  Here’s an interesting snippet of news as the Journal talks about the Florida real estate market making a comeback but with smaller homes.

Builders Return to Florida

More about smaller home building from The Net

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Smaller Homes for Boston?

Tһе St. Petersburg Times reported tһаt a Tampa Bay Builders Association spokesman ѕаіԁ tһаt builders wіƖƖ still bе building super-sized homes bυt tһеrе wіƖƖ bе more οf tһе smaller ones being built аѕ well. …

Publish Date: 06/15/2010 22:09

http://greenerlivingonline.com/smaller-homes-for-boston.html

Builders hope that smaller sells: Local developers say the trend

The company has such a good track record that the Home Builders Association of Lane County is hitching its annual showcase home fundraising effort to Piculell’s gambit by building the showcase house on the lot between the developer’s …

Publish Date: 06/08/2010 0:00

http://www.bigbuilderonline.com/industry-news.asp?referer=rss363&sectionID=363&articleID=1303668

Home Buying and Home Selling Tips » Blog Archive » Interested in a

Interested in a smaller home and price tag? Posted By varac on June 15, 2010. Are you interested in a home finished by a new building strategy? Some builders are taking advantage of lower lot prices to resume work in stalled housing …

Publish Date: 06/15/2010 23:57

http://www.buy-and-sell-house-fast.com/blog/interested-in-a-smaller-home-and-price-tag/