Guest Author - Rose Mary
As home ownership seems to be one of the main issues involved in the current economic crisis, the subject has also become a main topic in the news. Everyday there are different reports out regarding home ownership both encouraging and discouraging. It becomes rather difficult to figure out what is going on regarding home ownership, whether it is getting better or worse.
As loan modifications continue to move along at a snails pace, more people are ending up foreclosing. This is a sad situation when banks make it difficult for home owners to modify loan terms. It is actions like these that are creating so many people to become homeless.
There was an interesting story this week about a man who bulldozed him home because he was being foreclosed on. According to the reports, the value of the mortgage was a lot less than the value of the home. When the man got the money to pay off the loan, he was denied because the bank said they could make more money on the sale of the home after foreclosure. So the individual bulldozed the home in retaliation. It is so sad that it come to things like this.
Mortgage modifications have been slow to occur because banks feel they can make more on the sale of the home after foreclosure. Right now, the housing market is saturated with foreclosures. It is predicted that there is another wave of foreclosures to hit the market this year. What will happen to property values if this occurs? Will anyone be able to sell a home if the need arises?
The news and their statistics can be very deceiving when reporting to the public. Recently, they reported that January foreclosures has dropped dramatically. This should not have been news or a surprise when many banks had a 90 day moratorium on foreclosures that started before the Christmas holidays. This percentage on foreclosures should have been expected and reported in that way.
The housing crisis and home ownership will be in a mess for awhile. Whether you are buying, selling or own a home, be aware of your rights. Know what is going on locally in your community. Take advantage of community services such as the Community Housing Initiative to find out the latest details and what is available to you for help. Research and think clearly before making any decisions.