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What's the Fix for Home Mortgage ARM's - Default - and Foreclosure Dilemma?

Editorial Opinion

January 11, 2008. Corpus Christi - Padre Island RE/MAX REALTOR Mr. C. KIM McGuire

• Freeze all ARM's and other specialty teaser rate loans that have kicked in already at higher rates, or about to kick in during the next three months, for at least six to eight months. This should give time for borrowers and lenders to work things through for the equity of both parties.
• Borrowers need to continue to make payments at the current mortgage notes. They shouldn't stop if they want to keep the house. I've heard of one Realtor so far who has advised his client to stop making payments and let the Realtor help working with the lender to do a short sale. First, a lender will usually ONLY talk to the borrower! Besides, I believe that they can ONLY talk to the borrower because of confidentiality matters and risk of liabilities. Second, stopping making payments even if they can continue to make the payments at the current rate is a very Bad Move. It shows that the borrower is not willing to abide by the contract of the loan. Continuing to make payments shows the lender, and somewhere in the Administration's future plan hopefully, that the borrower is making honest attempts to keep the house and not just dump it into foreclosure.
• For investment loans taken at ARM, I don't believe that there should be any protection for majority of the cases. Easy to say then fully explained as to determine who qualifies and who doesn't.
• CEO's of all lending institutions need to STOP being greedy and stupid and "step up to the bat" to say that they will be converting all eligible owner - occupied residential properties into fixed rate loans with a 0.5% - 1% charge for handling administrative expenses.
• Lending institutions need to continue to charge penalty charges for late payments to cover their administrative costs and to keep borrowers honest and at bay from making late or skip payments.

Note: Contents of this article are the sole opinion of the REALTOR. Just like anything else in life, individuals MUST use their own research, analytical, decision, and prediction skills!

Padre Island Weather for Jan. 11, 2008: Mid-60's, SUNNY, Peaceful, and FUN.

www.CorpusTV.com

Optimism is in my blood! I have Attitude of Gratitude and that's what I teach my Twins. Optimism is a matter of viewing On Top of the Box, All Around the Box, Under the Box, Outside of the Box, and yes, In The Box!

Cheers, KIM.

Contact Mr. C. KIM McGuire, n-PRO @ 361.215-8612, a RE/MAX Corpus Christi to Padre Island to Port Aransas Realtor, for Your Home Buying, Selling, or Rent needs

KIM McGuire Sells "Home Sweet Homes!"

CorpusTV.com  Headline News

Fed Reserve Reduces Lending Rate by 0.5%?

January 11, 2008. Corpus Christi - Padre Island RE/MAX REALTOR Mr. C. KIM McGuire predicts a 0.5% Federal Reserve rate reduction in the next round.

With a at near recession economy due to housing and mortgage woes as reported daily in the media, and the cost for barrel of oil hits record highs affecting consumers directly at the pump and at the grocery stores, and reducing manufacturers' abilities to produce and hire, the Federal Reserve will most likely lower the lending rate by 0.5% in the next go around. Though the lowering of the Fed. Reserve lending rate will help bandage the economy in the short-term, the cost for price per barrel of oil and America's dependence on foreign oil must be examined more critically. The Department of Energy (DOE) must prepare aggressive plans to help curtail the country's dependence on foreign oil and Congress and the President must require those plans to be put into action. Individual households will likely continue to downsize their vehicles from SUV's to more fuel efficient vehicles, including alternative fuel vehicles like hybrids and hybrid plug-ins.

Housing. The impact on lowering of the interest rate will continue to be favorable for home buyers as the home loan rates are historically low. Home buyers will have to work extra hard in meeting the credit and financing documentation requirements of lenders as they have become more stringent in their lending practices due to an increase in foreclosures. These more stringent requirements will block some home buyers due to less than perfect credits and lack of funds for down payment and closing costs. Existing home owners will continue to evaulate refinancing their current loans to lower their monthly payments. Inventory will continue to rise and home buyers will have more favorable choices to work with in their home selection and negotiations. Home sellers must be more critical and careful in pricing their homes for sale as there are more homes for sale competiting against their homes and the limited number of buyers.

Note: Contents of this article are the sole opinion of the REALTOR. Just like anything else in life, individuals MUST use their own research, analytical, decision, and prediction skills!

Padre Island Weather for Jan. 11, 2008: 60's, SUNNY, Peaceful, and FUN.

www.CorpusTV.com

Optimism is in my blood! I have Attitude of Gratitude and that's what I teach my Twins. Optimism is a matter of viewing On Top of the Box, All Around the Box, Under the Box, Outside of the Box, and yes, In The Box!

Cheers, KIM.

Contact Mr. C. KIM McGuire, n-PRO @ 361.215-8612, a RE/MAX Corpus Christi to Padre Island to Port Aransas Realtor, for Your Home Buying, Selling, or Rent needs

KIM McGuire Sells "Home Sweet Homes!"