Foreclosures and Consumer Confidence
Posted May 26, 2009 3:47 p.m. EDT
Updated May 26, 2009 3:48 p.m. EDT
Foreclosures are still the talk of the town. Nationally and here in the triangle, the foreclosure numbers have been climbing since the foreclosure moratoria was lifted earlier this spring – meaning that the foreclosure process can again be started by lenders, which will certainly be adding many more foreclosures to the already staggering figures out in the country today.
But with every tragedy comes a silver lining and in this case it is the opportunity for many new first time home buyers to enter the home marketplace. During the real estate boom over the last ten years, many first time home buyers were priced out of the market forcing them to rent and delay their dream home purchases. There are many heavily discounted homes available across the country, just waiting for buyers to snatch them up. For the aforementioned first time homebuyers, now could not be a better time to be thinking about purchasing one of these homes. Tax credit incentives, historically low interest rates and the availability of these homes make it especially enticing to be in the home market today. Not to mention the fact that this segment of the population can help to not only make a dent in the excess supply of homes today, but can help clear out the foreclosed properties which act as a barrier to the return of normal conditions for a traditional housing balance here in the US. As for those who are in their homes already but are in need of help, a reminder to check with www.makinghomeaffordable.gov for eligibility guidelines on whether or not you could benefit from a Making Home Affordable Refinance or Making Home Affordable Modification to your existing home loan.
And as it seems that consumer confidence is again on the upswing, we must be careful as to react appropriately and not get too far ahead of ourselves in thinking that all things safe and proper have returned to the housing business. The jobs picture is still one which we must watch very closely because for obvious reasons, if the employment picture continues to get worse and people don’t have the ability to make their mortgage or other monthly debt obligations, we’ll continue to see the foreclosure picture and housing overall get much worse before it can get better.
On a different note, as mentioned in a blog earlier this year and with only a slight delay of a month or two, we’ll be bringing a video version of my blog to WRAL.com in the coming weeks. I’m very excited about this opportunity and look forward to being able to deliver timely home and mortgage information in person via the web.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.