It looks as though the long expected flood of foreclosures, also called the shadow inventory, has once again been put on hold. There are irregularities in the title of many foreclosure properties and this must be dealt with prior to releasing homes by the banks. This is a reprieve for those in foreclosure and may allow them a place to live for free for an extended period of time.
Following are some of the results of this delay:
- Lenders may finally work to unload properties easier as a Short Sale allowing more home owners avoid a Foreclosure on their record.
- There may be less distress sales and more Standard Sale home which will sell at a higher price.
- Home Owners that are up to date with their mortgage may benefit from higher home values.
- Lenders may be able to hold on to properties long enough for consumer confidence to increase, more people being put back to work and eventually unload the shadow inventory easier at a higher price.
- The U. S. Government may be able to avoid another bailout or stimulus package.
- Interest Rates will most likely rise sooner and the U. S. Government may be able to stop supplementing the interest rates.
- Property Taxes should then increase and State may be able to balance their budgets sooner.
- The increase in property value should prevent many home owners that are on the ropes from losing their homes to foreclosure.
- Businesses that depend on consumer confidence should begin to increase sales and profits.
Unfortunately, it seems as though most people that are already under water will still lose their homes. My heart bleeds for my fellow Americans as they are the victim not the cause!
Your Friend & Realtor,
Tony Lewis * RE/MAX of Valencia www.TonyLewis.com tonyglewis@yahoo.com 661-702-4720
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