Guest Article by Mary Aldoseri
As the month draws to an end let’s have a look at the current real estate market in the news…
A Helping Hand for Struggling Borrowers
The states of Arizona, Florida, and Michigan are planning to use federal funds to bring down loan balances for struggling borrowers and to subsidize mortgage payments for those who remain unemployed. The proposals are a ripple effect from foreclosure-prevention efforts championed by the White House, which allocated $1.5 billion for Arizona, California, Florida, Michigan, and Nevada. The Treasury Department is the reviewing the plans, which will be finalized as soon as next month!
The Financial Crisis is Over… It’s Time to Raise Interest Rates
According to the National Association of Realtors, Ken Rosen, chair of the University of California Fisher Center for Real Estate, has confirmed that the financial crisis is over and that short-term rates should be 2 to 3 percent. He predicted that by keeping rates very low, we will see asset bubbles in the stock market, bond markets, and global real estate. Rosen then mentioned that demand for housing will escalate as companies hire more employees. Rosen also predicted that new home construction will remain way below the historical norm of 1.1 million homes a year for at least a couple of years and that foreclosures will set records in 2010.
Mortgage Fraud Persists…
CNNMoney.com has stated that Mortgage fraud continues to rise,
1. Mortgage Fraud rose to 7 percent in 2009
2. Mortgage Fraud rose 26 percent in 2008,
(Figures by Mortgage Asset Research Institute)
Florida is one of the 10 states where mortgage scams are most common:
• New York
• New Jersey
Mary Aldoseri writes extensively online on various Florida topics her website helps those from overseas and interstate to buy property in Florida.