A Sigh of Relief?
Real Estate Outlook
By Kevin Reder and Rick Scherer
Many distressed homeowners may be able to finally breathe a sigh of relief due to rising home costs from expired ARMS (Adjustable Rate Mortgage) or the possibility of foreclosure. Major lenders have created new policies, some even entirely new departments, to alleviate the burden facing many homeowners created by the economy and various markets.
Bank of America and its acquisition of Countrywide Financial have been leaders in this arena, offering innovative solutions to keep people in their homes. New policies, re negotiating interest rates, lowering principals, and the development of Bank of America’s Nationwide Homeownership Retention Program for Countrywide Customers are the latest tools Bank of America has implemented to keep their customers in their homes.
Starting December 1, nearly 400,000 Countrywide borrowers could benefit from the creation of the Homeownership Retention Program that will modify up to $8.4 billion in interest rate and principal reductions. “We are confident that together with together with Attorneys General we have developed a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership,” said Barbara Desoer, president, Bank of America Mortgage, Home Equity and Insurance Services. “Since acquiring Countrywide in July, we have committed significant resources and developed innovative programs to help as many Countrywide customers as possible stay in their homes.”
Other lenders are developing secured, but inventive, programs in order to offer loans in this tightening credit crunch. One lender is offering occupation specific loan programs, such as a 100% financing loan for Physicians. Wells Fargo is considering alternate underwriting guidelines that would take less emphasis on an individual’s current credit, but consider the individual’s entire credit history. While some of these programs are still in an exploratory phase, lenders are working to find a way to offer money by alternate means than simply immediate credit driven scores.
Turning from the nationwide financing solutions to local sales figures, the Tampa Real Estate Market is continuing to grow. Historically, September has been one of the slowest, if not the slowest, months of the year. However, September sales figures have exceeded the sales numbers in August. In September 2008, sales increased to 1345 total sales from the previous month, August sales of 1327 total sales. The truly exciting figure is the 2007 September total sales was 1,117, or an unprecedented increase of 20% from this time last year. This is extremely positive news for the rebounding Tampa real estate market, despite the Wall Street crashes and the lending institution bailouts.
Lastly, our real estate tip for the month: If you are looking for low cost options to improve your curb appeal, talk to the city. The city offers a choice of trees that can be planted in the section of land between the sidewalk and the street in front of your home. Traditionally, most islanders have chosen the Washingtonian Palm, which has contributed to the Davis Islands’ South Florida vibe, unique to this amazing South Tampa neighborhood. This service is provided by your tax dollars and will have an amazing effect on your home and its curb appeal, without hurting the pocketbook.
Kevin Reder and Rick Scherer are Realtors with Smith & Associates Real Estate, located at the corner of Bay to Bay Boulevard and Dale Mabry Highway. They may be reached at 813-839-3800 or visit their website www.southtampamoves.com
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