A Bright Spot in the
Media for Washington Real Estate regarding the Mortgage Market,
Foreclosures, and comments on the Sub-Prime Lending Market
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As in other parts of the country,
the local media has reported many stories on the "crisis" in the
real estate industry and the "melt-down" of the sub-prime mortgage
market. Indeed, there have been impacts to many mortgage
firms, and real estate agents working with borrowers requiring a
sub-prime loan; including impacts to some of our clients.
However, as some of the "media fog" is starting to clear, we are
getting a better picture of what is happening in the the Washington
State scene, and to the sub-prime market nation-wide.
From the
Seattle Times
September 15th article, some important perspectives must be
recognized when trying to understand the situation. One
important fact is that approximately one-third (1/3) of US home
owners own their homes debt-free. A second important fact is
that the bulk of the mortgage market is made up of loans to Prime
borrowers. Nationwide that group has a 2.6 percent foreclosure
rate; while Washington is way below that, at 1.39%. To be
sure, foreclosures happen for a variety of reasons: job loss,
divorce, illness or injury. In the Prime market, this number
is nothing to be too troubling.
Nationwide the sub-prime market is posting numbers such that 85.5%
of the borrowers in this group are paying on time. The
"Mortgage Professor" Jack Guttentag of the Wharton Business School
at the University of Pennsylvania, offers
his opinion on September 15, published in the Seattle Times,
that the sub-prime mortgage market has been beneficial overall for
both first-time home buyers and existing home-owners requiring this
type of loan. What is important is to make a careful and
honest evaluation of the abuses to this segment of the mortgage
market, and implement improved rules and safeguards to mitigate
excessive foreclosures and abuse in the future. We agree.
To sum it up, the mortgage foreclosure situation in Washington State
does not have the same underlying negative pressures on it, keeping
home ownership in our area one of the bright spots in the country.
If you are perhaps in a "sub-prime" credit category, there are still
competent mortgage firms that want to assist you, providing guidance
where necessary to help you heal credit issues, and eventually
enable your purchase of a home and real estate in Vancouver and
Camas, Clark County, Washington.
Feel free to contact us with any questions you
may have regarding this report.
Kathryn Alexander & John Slocum, Alexander
∞ Slocum Real Estate Team
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Copyrighted © 2007, Alexander
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Slocum Team;
Homes & Real Estate in Vancouver & Clark County Washington,
Kathryn Alexander & John Slocum.
RE/MAX equity group, inc. - Each Office is Independently Owned & Operated.
1+888-KALL-KWR; 1+888-525-5597; Specializing in the Sale of Resale &
New Homes and real estate in
Vancouver, Camas, Felida and the rest of Clark County, and
Southwest Washington.
♦ Disclaimer: The information in this
area report
is from reliable sources but not guaranteed. Please work with
a real estate professional you know and trust to ensure the best results in your home
search.
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