1. Freddy Mac & Fanny Mae – News for Nov 11, 2008:
New rules for troubled homeowners take effective on Dec 15, 2008
To qualify, borrowers would have to be at least three months behind on their
home loans, and would need to owe 90 percent or more than the home is currently
worth. Investors who do not occupy their homes would be excluded, as would
borrowers who have filed for bankruptcy.
Borrowers would get help in several ways: The interest rate would be reduced so
that borrowers would not pay more than 38 percent of their income on housing
expenses. Another option is for loans to be extended from 30 years to 40 years,
and for some of the principal amount to be deferred interest-free.
2. CitiGroup Plan Announced On Nov 10, 2008
Citigroup said late Monday it is halting foreclosures for borrowers who live in
their own homes, have decent incomes and stand a good chance of making lowered mortgage payments.
3. It is my opinion that the goverment at the very least, will certainly act in an aggressive
way to rescue the housing industry and the economy.
4. Massive Recovery Expected
My opinion and that of Jeffrey Ottreau,appraiser, that we will start a sales recovery not price recovery in mid of 2009.
The recovery will not mean an increase in prices.
We will still have a large inventory which will prevent price increases. OUr current absorption rate for Monmouth County is 10 months. Once we reach an absorption rate of 5 motnhs or less that is when potentially prices can increase.