Federal Officials Call for U.S. Housing Market’s Health Restoration

FOR IMMEDIATE RELEASE
Waldorf, Maryland, United States of America (Free-Press-Release.com) January 13, 2012 -- In the said white paper, Federal officials propose to convert government-owned foreclosures into rental properties. They say that the government-facilitated REO-to-rental program has the potential to help the housing market and improve loss recoveries on REO portfolios.

“This REO-to-rental program could take many forms. The REO holder could rent the properties directly, sell the properties to a third-party investor who would rent the properties, or enter into a joint venture with such an investor. In making this decision, policymakers should consider what program design will provide for the best loss recoveries and the best outcomes for communities,” Federal Reserve Board white paper says.

With the known negative effects of foreclosures for both homeowners and lenders, to pre-empt foreclosures, the Federal officials propose to the parties involved to opt for short sale. In a short sale, the home is sold to a third-party buyer offering less than the amount owed by the homeowner to the lender.

Federal Reserve Board data shows that home prices have fallen an average of about 33% from their 2006 peak that resulted to close to $7 trillion in household wealth losses, associated ratcheting down of aggregate consumption, and unprecedented number of households that have lost or on the verge of losing their homes.

High unemployment, heightened uncertainty, and persistent excess supply of vacant homes on the market, many of which came from foreclosures, are the reasons cited for the extraordinary problems plaguing the U.S. housing market.

Yahoo! Real Estate reported that the massive housing downturn so far has claimed millions of homes in foreclosure and threatens to sink even more in the future.

Lender Processing Services, Inc., a leading provider of data and analytics to the mortgage and real estate industries, reported that 6.26 million properties were 30 or more days delinquent or in foreclosure as of November 2011. Lender added that 2.11 million properties were in the process of foreclosure as of November 2011.

Meanwhile, data from the Federal Reserve Board says that about 12 million homeowners are underwater on their mortgages or more than one out of five homes with a mortgage.

Foreclosures, the Federal Reserve Board says, go beyond the suffering and dislocation of individuals and their families. Rather, Federal officials say, this has a negative communal effect as foreclosed properties sit vacant for months and even for years.

Whether you are a first time buyer, first time seller, empty nester, thinking about selling or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Real Estate Group is the number one real estate team. For more information, visit http://www.guldigroup.com and http://mdshortsalepro.com

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