How will foreclosure freeze 3-6 months affect home price?

[KIBU]

When the government decides to freeze foreclosure, looks like we are going to have to wait further and further for the forever longer delayed bottom of price.

[cr]

Eventually they’ll realize efforts to keep the <5% of households in foreclosure from losing their homes will come at the expense of potential first time buyers who remain priced out of the market.

At the peak of the bubble more people owned homes than the fundamentals of employment and affordability should have allowed.

Delaying that correction will have worse consequences than temporarily keeping people in homes they still won't be able to afford.

[cr]

Eventually they’ll realize efforts to keep the <5% of households in foreclosure from losing their homes will come at the expense of potential first time buyers who remain priced out of the market.

At the peak of the bubble more people owned homes than the fundamentals of employment and affordability should have allowed.

Delaying that correction will have worse consequences than temporarily keeping people in homes they still won't be able to afford.

[cr]

Eventually they’ll realize efforts to keep the <5% of households in foreclosure from losing their homes will come at the expense of potential first time buyers who remain priced out of the market.

At the peak of the bubble more people owned homes than the fundamentals of employment and affordability should have allowed.

Delaying that correction will have worse consequences than temporarily keeping people in homes they still won't be able to afford.

[cr]

Eventually they’ll realize efforts to keep the <5% of households in foreclosure from losing their homes will come at the expense of potential first time buyers who remain priced out of the market.

At the peak of the bubble more people owned homes than the fundamentals of employment and affordability should have allowed.

Delaying that correction will have worse consequences than temporarily keeping people in homes they still won't be able to afford.

[cr]

Eventually they’ll realize efforts to keep the <5% of households in foreclosure from losing their homes will come at the expense of potential first time buyers who remain priced out of the market.

At the peak of the bubble more people owned homes than the fundamentals of employment and affordability should have allowed.

Delaying that correction will have worse consequences than temporarily keeping people in homes they still won't be able to afford.

[KIBU]

Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/

[KIBU]

Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/

[KIBU]

Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/

[KIBU]

Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/

[KIBU]

Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/

[j]

No “foreclosure freeze” will stop people from losing houses in California. Many people purchased houses at crazy and unsustainable prices, and the foreclosure process is already long in California. It takes at least 6 months for a house to get sold under foreclosure by law, because there is 3 months to file a NOD and 3 more months to sale at auction. Note the at least part, because most NODs are filed much later than after 3 months. People that are 6 to 12 months behind on their mortgage will simply not pay up.

In Georgia where a house can and sometimes is auctioned after a payment is only 30 days late a foreclosure freeze will make a difference, but in California a “foreclosure freeze” is just giving free rent to the financially changed.

The loan workouts are great proof of this. These are loans where the borrower has worked out better terms and a lower payment, but 50% fall behind in less than a year.

[j]

No “foreclosure freeze” will stop people from losing houses in California. Many people purchased houses at crazy and unsustainable prices, and the foreclosure process is already long in California. It takes at least 6 months for a house to get sold under foreclosure by law, because there is 3 months to file a NOD and 3 more months to sale at auction. Note the at least part, because most NODs are filed much later than after 3 months. People that are 6 to 12 months behind on their mortgage will simply not pay up.

In Georgia where a house can and sometimes is auctioned after a payment is only 30 days late a foreclosure freeze will make a difference, but in California a “foreclosure freeze” is just giving free rent to the financially changed.

The loan workouts are great proof of this. These are loans where the borrower has worked out better terms and a lower payment, but 50% fall behind in less than a year.

[j]

No “foreclosure freeze” will stop people from losing houses in California. Many people purchased houses at crazy and unsustainable prices, and the foreclosure process is already long in California. It takes at least 6 months for a house to get sold under foreclosure by law, because there is 3 months to file a NOD and 3 more months to sale at auction. Note the at least part, because most NODs are filed much later than after 3 months. People that are 6 to 12 months behind on their mortgage will simply not pay up.

In Georgia where a house can and sometimes is auctioned after a payment is only 30 days late a foreclosure freeze will make a difference, but in California a “foreclosure freeze” is just giving free rent to the financially changed.

The loan workouts are great proof of this. These are loans where the borrower has worked out better terms and a lower payment, but 50% fall behind in less than a year.

[j]

No “foreclosure freeze” will stop people from losing houses in California. Many people purchased houses at crazy and unsustainable prices, and the foreclosure process is already long in California. It takes at least 6 months for a house to get sold under foreclosure by law, because there is 3 months to file a NOD and 3 more months to sale at auction. Note the at least part, because most NODs are filed much later than after 3 months. People that are 6 to 12 months behind on their mortgage will simply not pay up.

In Georgia where a house can and sometimes is auctioned after a payment is only 30 days late a foreclosure freeze will make a difference, but in California a “foreclosure freeze” is just giving free rent to the financially changed.

The loan workouts are great proof of this. These are loans where the borrower has worked out better terms and a lower payment, but 50% fall behind in less than a year.

[Author]

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