According to the Kiplinger Letter published on October 9th. More foreclosures spell woe for FHA, despite agency officials' insistance that a taxpayer funded bailout isn't in the cards...the insurance fund will likely need an infusion of cash to cover the losses when loans, they have insured, go into default. FHA wil be forced to tighten loan requirements and charge borrowers more.
Paragraph. According to the Kiplinger Letter, expect an increase in listings early next year. (therefore an increase in overall inventory) Some will be convinced that a somewhat improved economy will make sales more likely over the past year and a flood of foreclosures will be hitting the market. (a tidal wave held back from this year) This forecast will be mirrored in the Toledo area as the unemployment rate remains high and mortgage lenders locally, as well nationally, have been holding back on foreclosures trying to determine which homes qualify for which federal programs. Nevertheless overall housing supply will creep lower and on a national average price declines will flatten out.
According to the latest Kiplinger Tax Letter, the $8,000 tax credit for first-time homebuyers may be extended for a few months. A buyer may not need to have the transaction closed by November 30th, but only a signed contract of sale by that date.
Many people in the greater Toledo area have already taken advantage of this tax credit. Kiplinger also says that there is a small chance of an expansion of the tax credit to include all buyers (not just 1st-time buyers) and increase the maximum credit to $15,000. If you would like a copy of the Kiplinger Tax Report, email me at: Erdmann@bex.net This week’s Mortgage Market Guide market update is now available. If you'd like to receive that, just send me an email requesting it. Have a great week! Ron |
Ron Erdmann, CMPSRon has been a mortgage banker for over 27 years, managing offices in cities throughout Ohio, Michigan, and Indiana. He has consistently originated in excess of $40 million per year in new mortgage loans, which puts him among the top producers in the nation. Archives
February 2011
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