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Old 10-09-2010, 06:34 PM
 
3,164 posts, read 6,118,355 times
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The flood will happen if there are NO foreclosures for a year and then the government opens the gates again. But what do they care? It's all about elections anyway.
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Old 10-10-2010, 07:05 AM
 
Location: Sterling, VA
1,059 posts, read 2,623,092 times
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Short sales will still be permitted, perhaps the lenders will now manage the process more efficiently. There are more short sales than foreclosures in the Loudoun/Fairfax market. I do broker price opinions for lenders in the area, helping to set a market value for these properties and some of them have been under contract for a year waiting for the lender's approval.
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Old 10-12-2010, 08:17 AM
 
Location: DMV
10,136 posts, read 11,610,257 times
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Quote:
Originally Posted by Margery View Post
Short sales will still be permitted, perhaps the lenders will now manage the process more efficiently. There are more short sales than foreclosures in the Loudoun/Fairfax market. I do broker price opinions for lenders in the area, helping to set a market value for these properties and some of them have been under contract for a year waiting for the lender's approval.
Short sales are up everywhere because the government has been passing legislation to push for more short sales, which a lot of people don't know about. They have been trying to give Lenders money for selling short sales as opposed to foreclosing on properties. There was an article in the Washington Post earlier this year that talked about lenders getting pay offs for selling short sales properties and placing time limits on the sale of short sale properties. My assumption is the rules for the time limit aren't being enforced like they are supposed to.

Anyway, I posted a similar thread in the Maryland forum about this. This is not going to benefit anyone at all. Let's look at the facts, especially in the Northern Virginia region, where housing is super expensive. People have had hard times because they have lost jobs (maybe not as much as other places), they have over extended themselves with mortgages they cannot afford, they got ARM-rate mortgages where their interest rates have risen to ridiculous levels, or they have committed fraud. People are being foreclosed on for these reasons, maybe more, and they ultimately couldn't afford to pay their mortgage.

Regardless of how the process was handled for most of these people, the fact is they didn't have the money. So instead of handling this matter on an individual basis, which isn't realistic because this has gone on far too long, or by handling this by shoring up lending practices and establishing firm checks and balances, the government is looking to help people out some people who have violated a binding contract that they have signed agreeing to pay on their mortgage. For those that have been wrongly foreclosed on, I definitely understand the need to interfere, but the government will also be protecting people who outright blatantly received mortgages they simply could not afford.

Is that fair to bail people out of a conscience mistake that they have made? If the government gives people, who have tried to screw the system, help, then why wouldn't other people think they deserve help? I mean think about it like this, what if there are people sitting in Prince William County who have seen their housing value plummet, and see people living in homes mortgage/rent-free for possibly months, who knowingly are living in homes they cannot afford.

Don't you think the homeowners in that county who have paid their mortgage on time will become more and more tempted to stop paying on their mortgage? What is the incentive of paying on a mortgage when people have lied to get theirs and now they don't have to pay? This is creating a serious serious problem and people will become more desperate and use this legislation as a tool to get out of their responsibilities.
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Old 10-12-2010, 09:42 AM
 
Location: Virginia
18,717 posts, read 26,828,884 times
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Originally Posted by meatkins View Post
This is creating a serious serious problem and people will become more desperate and use this legislation as a tool to get out of their responsibilities.
I guess only time will tell. To be honest, I don't think this moratorium is going to have much effect on the Nova housing market at all. Just my opinion, of course.
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Old 10-12-2010, 10:32 AM
 
708 posts, read 1,143,710 times
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I am from Baltimore and this market is nuts to me. I work here with a good paying job and have never rented in my life until I got here. I just cannot imagine shelling out 400K for a nice condo. No thanks. So I cannot tell you how many foreclosures are in the pipeline, but I would hope prices come down so regular people can afford something.
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Old 10-12-2010, 11:05 AM
 
Location: Home is where the heart is
15,400 posts, read 25,776,806 times
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Quote:
Originally Posted by dshawg1 View Post
I cannot tell you how many foreclosures are in the pipeline, but I would hope prices come down so regular people can afford something.
I have the same hopes. I'd like to become more of an investor, but prices would have to come down... so I hope that's what happens, too.

Unfortunately, I don't think that's what will happen. Prices are high because people are moving here in droves and buying. I don't see that changing. If anything, I think this moratorium will decrease the inventory (temporarily). If you want to buy a house in the next year, you might need to add extra time for the search. I don't think it will affect prices. I also don't think we'll see a flood of foreclosures or a buyer's market here. But it would be fine by me if it happened.
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