The New Stimulous plan: The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.
Ok so in the scope of the entire United States - what does this really equate out to? How many home owners are there in the United States?
Is this really going to work? Will this really make a difference to the "general public"?
Your opinion Counts.
Susan: If 3 to 4 million homeowners who would benefit... do not... there will be consequences that will affect many others. We all know the effect a foreclosed home has in a neighborhood. It can have a major value effect on those right around them. These 3 to 4 million homeowners are not either isolated or insulated. What affects them affects many others thru a sort of domino effect. My three cents worth.
Foreclosed Homes and Short Sale Homes are having a massive Comp Problems in Neighborhoods. Sellers just don't seem to understand that. I suggest to my clients that if they do not HAVE to sell right now, then DONT. Wait till all this garbage has cycled through.
3-4 million or 8-9 million (by some estimates)means that many fewer foreclosures! As you know in our county (San Joaquin with Stockton the largest city), 85% of sales are REOs. Annual price decrease is somewhere between 40 and 49%, depending on whose numbers you believe. Every homeowner who is rescued with this plan means one less foreclosure. In our county, most HO are upset down by more than $100K. If their loan was reduced $100K,$100M will help 1000 HO, $1B will help 10,000 HO and $10B will help 100,000 homeowners. So $100B will help 1M HO and $300B will help 3M HO.
Obviously, not every area has the same numbers but I am willing to bet that in Nevada, Arizonia and Florida (as well as California), these numbers are not too far off.
The question is;Will this program work or will it be anoth "Hope for Amerca" which was advertized as being able to help 400,000 but actually only helped about 50!
Giving hundreds of billions to the banks is like hiring the fox to guard the hen house! We can only hope that this program actually works, that banks will see short sales as an alternative to foreclosure. Loan modifications need to be a priority also.
If I can get a loan in ~ 30 days, I should be able to "undo" a loan in not much more time!
Only time will tell if this is a drop in the bucket or it banks start "getting it" and wo9rk with us as opposed to working against us.
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