The newspapers are still filled with articles and editorials about the so called mortgage mess. The federal reserve is looking into banking practices and there is certainly a need for legislation that encourages lenders to modify loans. Many owners would benefit from a simple adjustment in the interest rate the banks charge. With rates at an all time low, owners who are responsible and do not want to lose their homes cannot get the banks to cooperate. I know of one owner who only wants to refinance the loan at a lower rate. Because the value has decreased, the bank will not consider refinancing. The home does not “appraise”.
OK, let me get this right. The owner wants to honor his responsibility to pay his debt. He has great credit a good job and could easily get the mortgage. Times are tough and he and his wife are struggling to meet their obligations but they are stretched to the limit.
The bank owns the note and if the owners cannot pay the current mortgage, they will end up losing the home. If they could refinance, their payment would go from $1,265 to $983. A $300 / month concession that would guarantee that the bank does not have to foreclose. But the bank refused the mortgage because the home they already have on their books has fallen in value.
The owners do not even want the bank to reduce the principal, only allow them to refinance.
This is the kind of thing that will get the public outraged. They will demand new legislation that will cause the banks to force banks to modify loans. If the banks would only cooperate with owners they could avoid most of the new regulations… and there will be new regulations unless banks amend their practices.
While there is much reason for concern, there are also many opportunities for buyers. There are many foreclosures and many more private sales where sellers own the homes out right or have a small mortgage. These sellers can afford to price their properties competitively. It is always much better to buy a well priced home from an individual that a foreclosure or heaven forbid, a short sale. The properties are almost always in better shape, you can negotiate much faster and usually have a much faster response. Individuals are more receptive to negotiations and if there is a problem uncovered during inspection, more apt to repair the defect.
For more information about homes for sale in this area, please visit our website: Homes For Sale In Port Charlotte, Punta Gorda, North Port, Englewood, Rotonda FL