Foreclosure Rescue Bill: Will it Trigger Buying?

by on Foreclosure Crisis

Many real estate experts and analysts are comparing the present housing market condition to the housing crisis experienced during the Great Depression. With the large inventory of bank foreclosure in the market, declining home price index and sluggish home sales, it is easy to conclude that the nation is in the worst crisis experienced in the housing industry.

Across the nation, majority of the states are suffering because of the foreclosure crisis. in an effort to stop it from worsening, a new legislation was even signed into a law last week. The said law includes a mortgage relief package that will be available to approximately 500,000 troubled borrowers.

With the new legislation acting as bandage to the bleeding housing market, everyone is speculating if the market will somehow stabilize and convince buyers that it is the right time to buy.

Of course, the success of the new law is still dependent on several factors. One of which is the approval of the lenders to allow their borrowers to shift to the government-backed mortgages. Many experts believe that it will be advantageous to these lenders considering the time and money they will save by avoiding to proceed with the foreclosure.

Also, homeowners will have to meet the requirements that will qualify them for the mortgage relief program. For those distressed borrowers who are at their wit’s end, there is certainly nothing to lose. If they do qualify, they will enjoy a 30-year fixed mortgage term and a much more affordable mortgage payment.

If everything goes according to the government’s plan, many investors and buyers are likely to take the plunge and finally make the decision to buy. With the many bank foreclosure for sale in the market, there are certainly a lot of affordable homes to choose home.