Comments on: Stopping foreclosures will not stop price declines

By: Judy Fitzgerald

Judy Fitzgerald — Tue, 22 Dec 2009 03:59:53 +0000

Hi!. Hey for the blog. I

By: orange county ca

orange county ca — Fri, 04 Sep 2009 23:03:00 +0000

Monthly payment is a big factor in driving people to buy, but I do believe having extra homes being dumped on the market at reduced prices does have a negative impact on overall home values. If people can move into foreclosed homes that are priced to sell, why would they pay more for a similar home down the street? This of course forces other sellers to lower their prices to compete.

By: Sean

Sean — Sun, 26 Jul 2009 22:37:13 +0000

Great point – easy to assume demand=desire, but you are absolutely right, demand requires both desire and capability.

By: Problem Is

Problem Is — Sun, 26 Jul 2009 18:33:01 +0000

Sitting through Econ 101, we also learned about barriers to entry in a marketplace. Mortgage qualification is a barrier to entry for demand or customers...

Thus it is a supply and demand issue, as you have rightly pointed out. The media and pundits are once again wrong in identifying who is who and what is what in the housing market.

What else is new when our media and political class constantly spread fallacy as fact?

By: Frank LL0SA

Frank LL0SA — Tue, 21 Apr 2009 06:54:01 +0000

Hey Sean, You gotta post dates around your blog posts.

By: Phoenix Mortgage

Phoenix Mortgage — Sat, 18 Apr 2009 07:20:46 +0000

Although declining home prices are not completely due to foreclosures, they do play a role. It goes back to the supply and demand rule. Excessive foreclosures equal excessive supply and with the banks tightening up on lending, it reduced the ability for demand to increase.

By: celine

celine — Mon, 23 Mar 2009 22:04:09 +0000

My parents were able to save their retirement plan and their savings by asset protection before the house they lived in went into foreclosure. The got the information from a book by steven sears attorney asset protection irvine. It seemed to work right and save them alot of grief and headaches.

By: dcamargo

dcamargo — Wed, 11 Mar 2009 20:06:59 +0000

Under the new Obama Foreclosure & Housing Reform Plan, change will occur rather slowly because lenders must understand the new subsidies and incentives offered to lenders to modify loans. It could be months before lenders implemented the modification program, since they would have to train representatives and update internal procedures. While this training is going on numerous borrowers will be calling to see if their loans can be modified overwhelming the system even further. Furthermore it is estimated that only 17% of home owners in need will be helped by the plan. Consulting a legitimate and professional loan modification company, like Friendly Financial Services, provides assistance to a community in need by working diligently and effectively to modify their client’s loans. Every single case is treated as an urgent matter; the staff truly develops personal relationships with their clients throughout the modification process. Unfortunately, most companies entering into this field do not have the experience and knowledge needed to modify these files successfully. Modifications are very different than standard refinances and a lot more cost effective. We are an accredited business holding an “A” rating with the better business bureau and have a 98% success rate with our attorney, Robert V. Rossenwasser. Friendly Financial Services separates from the competition with a staff comprised of underwriters and processors who worked for lenders and have an insider understanding of what banks want to see in order to approve modifications.

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By: Sean

Sean — Fri, 13 Feb 2009 06:09:35 +0000

Thanks Sheri! I couldn’t agree more. It makes no sense to me that we see so few short sales. They clearly provide a better outcome for both the homeowner and the lender. Thanks for contributing.

By: Sheri Isaacs

Sheri Isaacs — Fri, 13 Feb 2009 05:57:34 +0000

I sell homes in Orange County – my main market is in tthe “mid-range” around $750K (down from $950K average two years ago!) Fully 50% of our listing business is short-sales. (Upside down homeowners who need to get out.) The distraught sellers usually call us after several months of first denial, then having gone through or attempting a loan modification, only to be told they can’t get one, or the loan mod they get is clearly not sufficient… Once they come to the realization that they just can’t “save their home”, and get over the anger and loss stages ( the psychological stages of loss – as this truly is a “loss”), they come to “acceptance” and realize they should go down the road of the lesser of two evils…. A short-sale – instead of a foreclosure. If successful, (and 90% of ours have been), they will have to rent for a couple of years, while they start rebuilding and repairing their credit … and there’s light at the end of the tunnel. If they let the property foreclose, the credit repair part will be a lot tougher. Additionally, the psychological component of just giving up and not going out with a little dignity (which the short-sale seems to provide for many).. is what my clients end up choosing – even though they could stay a while longer for “free” if they let the property foreclose. The landlords they will be renting from also have more respect and look at “short-salers” vs “foreclosure” tenants with more respect….so they’ll have a better chance at finding a good rental. Just a little input from a realtor in the trenches of the OC… Sheri