This time around the tax credit didn't make much difference in home buying. During the last few months the purchase of homes has been very slow. Sales of homes only improved slightly from January. We may see improvement if the banks release the foreclosures and accept realistic prices for short sales.
The government is no longer buying back mortgages from GSE's (Government Sponsored Enterprises). GSE's are a group of financial service corporations created by the government. Examples of three GSE's are Fannie Mae, Ginnie Mae, and Freddie Mac. Since they were considered too large to fail they were bailed out by our government and the government bought back mortgages, but that won't happen any more.
They were also given tax breaks and were exempted from state and local government taxes and the use of the Federal Reserve as a transfer agent. The new rules have cleared the way for the mortgage servicers to increase their foreclosure activity, which will result in more distressed sales.
Homes have become a lot more affordable, and in many cases it is a lot better than renting. This is especially true if you consider the tax benefits. Mortgage rates haven't been this low since the 50's, which is incredible. This is creating an opportune climate for the buyer. As for those of you who have felt that they missed the boat due to the realization that they own a house that is so much more expensive than those on the market; don't worry! Rather than letting your house go into foreclosure, if you short sale now you can be back in the market buying within two years.
As a Short Sale Specialist, I would like to help.
Call direct or email me.
Shelley Gross (818) 481-8697.
website: www.Shelleysellsthevalley.com
email: Shelleysellsthevalley@gmail.com
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