Whenever an unplanned and unwelcome financial situation develops, a Metairie mortgage-holder can find him or her in the onerous position of being unable to keep up with the monthly home loan payments. If the unhappy situation continues long enough, the likely result is a foreclosure or short sale. In addition to losing the property, the impact on personal credit then takes years to undo. That means it takes that much longer for a consumer to acquire a new home and start to build equity again.
Here as elsewhere, there were rafts of such Metairie
mortgage defaults following the global financial meltdown. Even those who had
no trouble servicing their area mortgages could have suffered when they found that
falling property values prevented them from refinancing—even when the purpose
was to improve their property. Although those events happened years ago, it’s
only now that their aftereffects are finally working their way out of the
system.
A recent article in NMP—the
national Mortgage Professional’s magazine—delved into the changing status of
those who lost homes in the turndown. The details they researched are
interesting in themselves—details that are bound to have an impact on Metairie residential
sales.
First off is the fact that enough time has elapsed for
those who weathered a short sale or foreclosure to begin to return to eligibility.
They’re called “Boomerang Buyers”—and nationwide, there are estimated to be
7,300,000 of them! In 2016 alone, more than a million will become eligible to
return to the home-buying market. According to NMP, “they’re returning to the market in droves.” The hardest-hit
states were Nevada, Florida and Illinois—but there are plenty of Boomerang
Buyers scattered across the rest of the nation.
The improving mortgage eligibility landscape extends beyond
those who suffered the actual loss of their homes. To the more than 7 million
“distressed” homeowners whose properties are still underwater (those who owe
more than market value), the government’s HARP 2 program is one possible remedy.
Its guidelines encourage lenders to relax the loan-to-value caps that had
prevented refinancing for many of those homeowners. Reports are that it has
already resulted in an increase in such refinances.
Other program combinations are helping loan originators and
Realtors® get more
bank-owned homes back into homeowners’ hands. These are properties that make up
the ‘shadow inventory’ of unsold homes, many of which have fallen into
disrepair. Because of that, they’ve been difficult to finance—and therefore
difficult to sell. Through FHA 203K and Fannie Mae’s Homestyle®
renovation mortgages, more ambitious prospective owners—including investors—are
discovering they now have mortgage options that can put those fixer-uppers
within reach.
For those who have previously found it problematic to secure
a Metairie mortgage with acceptable terms, it may be worth looking into today’s
improved financing alternatives. Especially with mortgage interest rates at the
levels we’re seeing this October, what you find may be a pleasant surprise—one
that puts you into the house of your dreams. Call me to discuss first steps!
The culture of our city has so much to offer... Love our city, New Orleans.
Questions about buying or selling a home?
Call Terez B. Harris
504.297.2619
View Homes For Sale in Metairie
View Homes For Sale in New Orleans
Call Terez B. Harris
504.297.2619
View Homes For Sale in Metairie
View Homes For Sale in New Orleans
Terez B. Harris
Terez Harris NOLA Realtor Group
Terez Harris NOLA Realtor Group
(504)297-2619
www.TerezHarris.comTerezHarris@kw.com
Terez B. Harris Terez Harris NOLA Realtor Group 504-297-2619 www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.
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