Putting off Foreclosures or stimulating Sales

By
Services for Real Estate Pros with P. Timothy McDonald, Esq.

It seems the President and the Members of Congress are trying to do whatever they can to put off the large scale foreclosure crisis.  As many of us in the business know, the huge numbers of foreclosures are in and of itself a drag on the market.  They keep prices down which in turn prevents people from getting the value they need when they sell their home.

Shouldn't the focus be on stimulating the market for the sale of homes?  If this is where the focus was, the value of homes would increase, which in and of itself would reduce the number of short sales and foreclosures.  While some of the foreclosures would be put off because people would be allowed to refinance with value in their home, this would significantly reduce the number of short sales because people would have more value in their homes.

Comments (2)

Dan Hartman
Province Mortgage Associates - NMLS #2861 - Providence, RI

Hi, Tim,

Good to see you on here.  While I agree that stimulating sales would facilitate a return to normalcy, how do you propose it be done?  With the challenges currently out there, we need to find a way to encourage sellers to price aggressively, and to encourage buyers to pull the trigger.

Dan

Feb 26, 2008 02:16 AM
Timothy P. McDonald
P. Timothy McDonald, Esq. - Warwick, RI

Hi Dan:

 

Thanks for the comment.  I dont necesarily have all the answers.  You are correct that sellers need to price agressively but that is not always possible when often times people are upside down.

Feb 27, 2008 11:50 PM