Reader's Question:
I understand President Elect Obama will unveil a plan that should stimulate the housing crisis that we are in. Have you heard anything about this and how do you think it will affect all of us homeowners that are trying our best to hang on to our homes?
Christian's Response:
Reader - Obama's plan may be a good start but don't hold your breath. It frankly isn't fair to place 100 percent of the burden on one man. One man didn't create this mess so, don't expect one man to clean it up. In my opinion, Obama is definitely taking some strong and bold steps in an effort to boost the economic slump. Many believe that the plan will surface sometime in February and if all goes well, it should hopefully come to life shortly thereafter.
One of the many items suggested includes mortgage interest rates of 4.50%. That may encourage many home buyers that have sat on the sidelines to make a move and buy real estate but ...... the deeper problem and the true issue consistently remains the same. Banks are not willingly funding loans like the "old days." Trying to get a lender to fund in today's market is like pushing an elephant up a mountain. To say that banks are overly conservative is putting it mildly. Many buyers with 750 + FICO scores are not able to qualify for loans today. It's a nightmare. Revised legislation needs to be put into place and congress needs to step in and push these banks to lend some of the 700 billion they are squatting on. The White House must step in before all of us are living in the Dog House.
I understand President Elect Obama will unveil a plan that should stimulate the housing crisis that we are in. Have you heard anything about this and how do you think it will affect all of us homeowners that are trying our best to hang on to our homes?
Christian's Response:
Reader - Obama's plan may be a good start but don't hold your breath. It frankly isn't fair to place 100 percent of the burden on one man. One man didn't create this mess so, don't expect one man to clean it up. In my opinion, Obama is definitely taking some strong and bold steps in an effort to boost the economic slump. Many believe that the plan will surface sometime in February and if all goes well, it should hopefully come to life shortly thereafter.
One of the many items suggested includes mortgage interest rates of 4.50%. That may encourage many home buyers that have sat on the sidelines to make a move and buy real estate but ...... the deeper problem and the true issue consistently remains the same. Banks are not willingly funding loans like the "old days." Trying to get a lender to fund in today's market is like pushing an elephant up a mountain. To say that banks are overly conservative is putting it mildly. Many buyers with 750 + FICO scores are not able to qualify for loans today. It's a nightmare. Revised legislation needs to be put into place and congress needs to step in and push these banks to lend some of the 700 billion they are squatting on. The White House must step in before all of us are living in the Dog House.
