Ed's Blog

The modified $700 Billion Federal Bailout was passed today, after a week of fear mongering (compliments of our press). While this historic intervention has been deemed necessary -but far from perfect- by some of our nation’s most successful investors, what does it mean for you as a homeowner or potential homebuyer?

The main objective of the bill is to encourage banks to begin lending to one another once again, so that we can still obtain loans to purchase or refinance our homes, to buy cars or to secure a business loan (you know, those things that keep our economy thriving?)

Unfortunately though, many of us won’t feel any immediate relief from the passage. However, the bill does encourage lenders to work quickly to implement loan modification programs for homeowners struggling with their mortgage payments. It is my hope that lenders take this job very seriously, as keeping people in their homes, should staunch the flow of foreclosures. This in turn should help to stabilize our home values, and ultimately help to start stabilizing our economy.

And there’s good news if you have good credit, verifiable income and a down payment of 10-20%. Now is a great time to be a home buyer. Interest rates are low, mortgage money is available, and some of the home prices available right now, are simply spectacularly low compared to several years ago.

In the meantime, I along with you, will be waiting with bated breath to see if we all get some economic relief soon from banks being more willing and able to lend again.

Here’s to a speedy economic recovery for all of us!

There’s no denying that we’re facing serious economic hardships. At a time like this, when low morale is felt not only on Wall Street but in our hometowns, it’s all the more important to celebrate the little victories in our economy. So today, I write with a two flickers of hope that have come to light.

In a surprise report, The National Association of REALTORS® reported that pending home sales actually rose 7.4% from July to August of this year, making it the highest reading for pending sales of existing homes since July 2007. Certainly, this doesn’t mean that our housing troubles are over, but it’s certainly not the worst news we’ve had lately!

Secondly, Bank Of America has announced an aggressive foreclosure prevention initiative, which will be available to qualified homeowners beginning in December. This initiative will cut monthly housing payments (mortgage, property taxes and insurance) so the total payment does not exceed 34% of the household’s gross income. I’ll provide more details on this aggressive foreclosure prevention plan soon.

Here’s to brighter days ahead!