Housing Still In Trouble Redux
Not that we didn’t know this, and not that I’m necessarily repeating myself, but home owners are still facing big problems in this country, as well as the entire real estate industry.
A report came out this week saying that only around 5% of home owners have been able to get new mortgages to adjust their payments because of the change in what their homes were worth. Mortgage lenders are still reticent on lending money, and are scrutinizing present home owners so much that they’re just not willing to give up their positions, and thus are turning down people, even if they have great credit scores, something I wrote about last December, of all things.
And, oddly enough, some of those people who got loan modifications only got temporary passes, so to speak, as the Congressional Oversight Panel stated that, as of September 1st, only 1.26% of these loans were permanent. The help that the Obama Administration gave so that more people could qualify for at least some kind of relief was supposed to come with the possibility of having 5 years of relief; nope, guess not.
Meanwhile, foreclosures have been holding steady, but there are worries that another big round could soon be on its way if the Administration can’t help figure out a way to get more banks and mortgage lenders to open up their pocketbooks and help homeowners out.
For their part, banks are saying they’re confused by some of the paperwork, as are the home owners, and that’s scary. Citigroup, whom I bash often, says that most home owners give incomplete information or don’t fully complete the forms. They’re one of those lenders who have only approved 1,800 people for full relief and have over 89,000 others on a temporary plan; that comes to only 2%.
This one is definitely going to go on for awhile, and that’s a shame.