We have all seen the reports from the "experts" predicting an increase in the foreclosures in 2010. While the Extended Tax Credit has helped to stimulate a real estate market, the Obama Administration is planning to step up the pressure on lending institutions. And it's about time!
The Treasury Department is planning to give monetary incentives to Lenders who modify loans for struggling homeowners. Under the $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years.
A recently released report from a Congressional Oversight Committee found that homeowners with fixed rate, conventional mortgages and have lived within their means are facing foreclosures. Did they really not see this coming? For the past two years, the current real estate market has been blamed predominantly on consumers living beyond their means. And while that was the case for some homeowners, lenders targeted certain segments of the population with risky loans. Add the inflation of home prices, ridiculous stipulations, and unrealistic expectations and the problem expands to all types of homeowners.
So now the question is, what do we as real estate professionals do to educate homeowners in our communites?
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