The US Senate is poised to pass a huge foreclosure rescue bill as soon as today. (see article)
Basically the bill says the Federal Housing Administration would back $300 billion dollars in new loans for distressed borrowers that are currently considered too risky to qualify for a loan now.
Hmmm... correct me if I am wrong but didn't we get into this mess by lenders making loans to people who were bad risks?
So the government says that the solution is to make it possible for more loans to be made to people who should not have them. WOW! The solution to our problems was so simple, why couldn't I have thought of this? I wish I could be as brilliant as out politicians.
We all know that this legislation will pass in some form due to election year… Foreclosure rescue bill is a hideous idea
The US Senate is poised to pass a huge foreclosure rescue bill as soon as today. (see article)
Basically the bill says the Federal Housing Administration would back $300 billion dollars in new loans for distressed borrowers that are currently considered too risky to qualify for a loan now.
Hmmm... correct me if I am wrong but didn't we get into this mess by lenders making loans to people who were bad risks?
So the government says that the solution is to make it possible for more loans to be made to people who should not have them. WOW! The solution to our problems was so simple, why couldn't I have thought of this? I wish I could be as brilliant as out politicians.
We all know that this legislation will pass in some form due to election year… 
In my market (North Fulton County, Georgia on the east side of HWY 400), May sales figures remain flat between April and May, which represents a 32.8% drop as compared to May of 2007 in the same market.
The most pronounced change since this time last year was seen in the mid-level homes, priced between $275-600K. This price range dropped a whopping 43.6% in total sales over last year. Inventory for this market increased 15%. Total inventory divided by pace of sales, offers a 12.88 month supply of homes in this price range now, which is a 127% increase in the supply over 2007.
Taking a preliminary look at the June figures, there is nothing to suggest that the market is breaking out of the current pattern. I'll keep you updated as the month progresses.