Restore the Arizona Housing Market

By
Real Estate Agent with Keller Williams Realty EV (AZ) & Keller Williams SLC (UT) 629265000 & 7238507
https://activerain.com/droplet/6dd

Rest In Peace Arizona Housing Market

 

Written by Diane Gerdes      Reposted with Permission.

 

It’s official.  Our government is slowly killing the Arizona housing market.

President Obama torpedoed the already distressed home financing industry by announcing the gradual raising of down payments to a minimum of 10% on conventional loans.  He touted a 2009 survey by the Federal Reserve Bank of St. Louis that reported families who placed minimum down on their home purchases were more likely to default.

Really?   2009 is eons ago in housing terms and those figures are probably reflective of the 100% loans offered from 2004 through 2007. But you would have to actually pay attention to today’s numbers to know families aren’t ‘Toughing it out’ in a house that has lost 50% (or more) of its value, no matter what they put down.

In 2004 studies surfaced proclaiming 100 percent financing was hunky dory.  At that time housing prices were increasing, the economy was swinging.  What could possibly go wrong?

Or maybe it was the same survey that reported the more paperwork you sign, the less likely you will foreclose.

“Homes Are Now Difficult to Buy” incentive program, or HAND in keeping with the government’s love of catchy acronyms, was joined by FHA’s broadcast of a second mortgage insurance premium (MIP) increase in six months to help shore up its reserves.  Before September, the monthly MIP on a $200,000 FHA loan was $91.66.  After April it will be $191.67, that’s right, a $100.00 a month jump in payment.

In the 30′s the government stepped in to save the housing market by establishing FHA and Fannie Mae.  We all want Uncle Sam to get out of our business.  But the investors and banks that purchased mortgage loans have evaporated along with our home equities, moving on to more stable investments, like Middle East Artifacts.   The Fed willingly gave hundreds of billions of dollars to the financial sector to save Wall Street. Yet, they are tightening a hangman’s noose over the housing market and calling it collateral damage.

The banks should modify our home loans, carve down the principal balance to appraised values and allow us to refinance at the lower rates.  Anyone that has stayed in their homes over two years should qualify.  The lesser payments would give our economy a boost by freeing up disposable income.  I could buy an extra box of wine every month.

Instead of a tea party, we should start a “House Party” to bring attention to the ignored devastation of our housing market.  Or we may all be living in tents along the Salt River.  And everyone will be sorry for our loss.

Join the House Party! The following are the phone numbers for the representatives of our great state.  Contact them and ask them to take action, restore our housing market!

Sen. John McCain 602-952-2410

Sen. Jon Kyle 602-840-1891

Rep. Jeff Flake 480-833-0092          Rep. Trent Franks 623-776-7911

 Rep. Ed Pastor 602-256-0551         Rep. Ben Quayle 602-263-5300

 Rep. David Schweikert 480-946-2411 



 

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Shanna Day Dream Home Team

https://plus.google.com/112829348058511259992

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Topic:
Real Estate Market Trends
Location:
Arizona Maricopa County
Tags:
arizona
az housing market
buying in az
restore housing market
contact your senators

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Rainer
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Monique Keith
Ahwatukee, AZ
Ahwatukeenulls Favorite Realtor, Buyers Agent with

As a Realtor in the SEVRAR area of the valley I'm happy that we have lobbyist representing our interests and our clients in Washington D.C.. Most of us sell homes to help people achieve their goals, but it's hard when regulations that are meant to protect actually harm our clients. 

Aug 21, 2012 09:36 AM #1
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Rainmaker
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Shanna Day Team Leader AZ & UT - Call 480-415-7616

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