Posted on Tuesday, March 13, 2012
The settlement helps especially if you are a recipient of the debt reduction but on the grand scale the national real estate market it may not help much. We reported earlier in the blog the high percentage of homeowner’s “underwater” in their mortgages – no real news here. What is news is every day we work in Naples real estate we meet clients who are reluctant to lower their price or who are unable to sell their homes (here or “up north”) because they are underwater. We need some help if local Naples real estate volumes are going to increase significantly.
So how much help are we going to get? Not much really. Florida REALTOR reported yesterday “Bank of America will reduce the amount owed by the homeowners by as much as $100,000 in some cases. Only mortgages that are currently owned by Bank of America will qualify. Those that are owned by government entities Fannie Mae and Freddie Mac, or backed by the Federal Housing Administration will not be eligible. …The broader settlement with five mortgage lenders is expected to reduce loans for only about 1 million of those Americans and send checks to others who were improperly foreclosed upon.”
So what? Well “one in eleven” homes receiving some sort of break addresses nearly 10% of the market – that should help a little. It seems unlikely to move markets all by itself however. It looks like what we need is long term earnings power for folks to help themselves and climb out of those underwater mortgages.
Thoughts?
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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