Recently President Obama announced the Homeowner Affordability and Stability Plan. According to the White House the plan is designed to help homeowners at risk of foreclosure due to an inability to pay their mortgage.
The Keys2Day Team has examined this proposal and evaluated it for its potential to help revive the local real estate market.
As of the end of January 2009 Maryland had an available housing inventory of 43,160 units. Many of these houses are foreclosed properties in direct competition with owner occupied properties and investment properties.
For the past 12 months The Keys2Day Team has been a proponent of foreclosure moratoriums and modifications. It is our belief that keeping owners in their homes, while still obligating them to pay for the property, will begin to remove inventory from a market that is already suffering from over supply.
In addition, it is important to remember that homeowners who have not experienced problems paying their mortgages, well over 90% of mortgage holders, are still exposed to the effects of foreclosures in their neighborhoods. Houses that sell at foreclosure usually sell at a discount. This helps decrease values of other homes in the area.
While we do not agree with every aspect of The President’s plan we do think that it will, if executed properly, help stem the tide of foreclosures. This will address, what we see, as the main two issues in the housing market: (1) over supply and (2) devaluation. The results of which should be a supply/demand balance and price stabilization.
Finally, wed like you to examine the President’s proposal for yourself. Take a look at it here. It’s important that we all stay informed about what is the most expensive item most of us will ever purchase.
If you have any questions please do not hesitate to contact us 2day.
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