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Great Read - Easy To Understand Explanation Of Today's Stalled Mortgage Situation

By
Services for Real Estate Pros with Zillow

This is one of the best articles I've read that really helps explain the mortgage situation that exists today and the stalling of the foreclosure market.  It is a bit long, but if you are looking for a primer in easy-to-understand language, this article is for you. 

Bubble, Bubble, Toil and Trouble in the Foreclosure Market

I certainly agree with this bullet point in the conculsion area:

"At the risk of understatement, slowing down the foreclosure process just for the sake of slowing it down is really not helpful at this point in the housing correction. In fact, it's really quite bad for the market as it will delay the natural process of supply and demand reaching equilibrium because buyers will stay away from a market that they view as still heading down. And we'll have less of a real sense of total supply because a lot of it will be tied up in homes that are in foreclosure limbo. We absolutely need to make sure that the foreclosure process is proceeding in a legal and transparent manner but, once that is satisfied, it's not going to help real estate markets to delay foreclosure actions that are ultimately going to happen anyway at some point in time."

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Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Great points Sara, if the government would just keep their noses out of this and let the market correct naturally, I think things will get better faster. This foreclosure stoppage is not going to help...

Oct 12, 2010 08:16 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I agree with parts of the article.  However, the banks need to slow down and make sure they are handling everything right.  There are too many stories of the banks just bullying people and lumping them altogether and innocent people getting hurt. 

Providing more money to the mortgage market was like providing Cold Medicine to a Meth addict. It drove up prices and drove the consumer spending binge, and caused the mortgage crises with bad loans.  MERS is wrong and cheated states and counties out of revenue.  (I am not normally one to take the side of government.)

I think any bank or lender who bit of the apple and took bail out ought to be required to provide honest and steep mortgage modifications and/or required to timely permit short sales.

Oct 12, 2010 08:57 AM
Sara Bonert
Zillow - Atlanta, GA
Real Estate Internet Marketing

" think any bank or lender who bit of the apple and took bail out ought to be required to provide honest and steep mortgage modifications and/or required to timely permit short sales."    Here here.  That whole 'parelle mortgage world" was interesting to read about.  To outsider like myself, it just seems like a shady system.

Oct 12, 2010 09:04 AM
Kim Boekholder Utah Real Estate/ PECO
Results Real Estate 801.580.5624 - Draper, UT
Broker Results Real Estate/Leasing Specialist PECO

banks needs to slow  down, take a deep breath and do whats right.  I have short sales where the bank has told us they would rather foreclose so they get the mortgage insurance payment and then turn around and sell the "foreclosed" home and make money there too. 

Oct 12, 2010 05:05 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I had to read it twice to get it. But, now I do...thanks. Interesting comments on the MERS Edifice.

Oct 13, 2010 03:03 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Sara, thanks for the link.  That was a really clear explanation of MERS.  Not sure whether or not they are evil!

Oct 14, 2010 06:51 AM