Too little, too late for debtors?
Too little, too late for debtors?
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5
By Richard Mize
Published: September 1, 2007
Whether "significant,” or a "Band-Aid” on a "huge gash,” President Bush's action Friday to help people struggling to keep their homes is something, which is better than nothing.
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A more stable market
The effect on the market as a whole? Berry said housing here could see average depreciation of 3 or 4 percent before things turn around.
Allowing people to get out of a subprime, or delinquent loan, and into a fixed-rate FHA-insured loan will help stabilize the entire market, said David Feisal, senior vice president of Tulsa-based SpiritBank and immediate past president of the Oklahoma Mortgage Bankers Association.
Home builder Jeff Click he was encouraged to see the White House's attention.
"A sound lending industry is vital to the recovering health of the broader real estate market, and homebuyers need to be able to have confidence in their financing options, while existing homeowners need to have reasonable options to preserve their ability to remain in their home,” said Click, vice president and secretary-treasurer of the Central Oklahoma Home Builders Association.
But Oklahoma City loan officer Scott Senner said allowing struggling homeowners with good credit to refinance will answer just part of the problem.
"One of the biggest reasons that borrowers have some of these exotic mortgages is that they did not have good credit histories in the first place,” Senner said.
Nonetheless, the reform is part of what the National Association of Realtors has been asking for, said Victoria Caldwell, president of the Oklahoma City Metro Association of Realtors.
Related Topics:
Business, Real Estate

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Now for those of you that say its all teh subprime mortgages that are causing this you are wrong...there may be a few that are representing this wrong, but this has been a great tool for us, as we were able to get into a home in our price range and have made all the paymentys since we have been here. SOMETIMES PEOPLE NEED SECOND CHANCES and we were igven one. It just depends on the person and whether then intend to continue ruining their credit the ways they had before. My husband andI just wanted a chance to bring up our credit and not be blowing over 10,000 a year on rent. We want our return on our money the same as anyone else does...so why rent ?
We are ona two year arm bar to compensate for the bad credit and at the end of two years when our payments have been made and we have earned the creditors trust , we will refinance to a fixed and be set.
So its not all bad when one takesa subprime loan, if they have every intention of keeping it good.