MRIS is excited to announce WashingtonPost.com’s “House Lawyer” and regular real estate columnist, Harvey S. Jacobs, to join MRISblog.com as a contributor. Harvey S. Jacobs is a real estate lawyer in the Rockville office of Joseph, Greenwald & Laake. He is an active real estate investor, developer, landlord and lender. Read below for a recap of Harvey’s most recent Washington Post article and stay tuned for original articles from Harvey in the near future.
Real estate experts say mess could be solved if government would stop helping
After attending the National Association of Real Estate Editors annual conference the other week, Harvey shares his takeways. He states that despite the strengthening market, the real estate mess that we are experiencing will last for another another three years as the so-called “shadow inventory” to make it into the hands of non-bank owners. Harvey further analyzes who exactly is buying and how they are doing so. For example, did you know that cash transactions account for 33 percent of all transactions? Read Harvey’s full article on http://www.washingtonpost.com/realestate and stay tuned for more articles from the “House Lawyer.”
Harvey — welcome to the MRIS Blog Community. We very much appreciate your efforts to improve the RealEstate IQ of our customers — and their customers too — by keeping us all well informed. On behalf of the MRIS team and our customers, THANK YOU in advance for your valuable contributions.
Harvey, can you tell me what advice can I give my clients who purchased at the height of the market, their house is no longer worth what they paid for it, and they feel it is a bad investment? Their feeling is that with any bad investment you get rid of it. They called the bank and was told since they weren't behind in their payments that they wouldn't do a loan modification until they were several months behind? They don't want a bail out, nor to ruin their credit, they just want the current interest rates… They do not have a freddie mac or fannie mae loan.. What can they do?
Coni- There are now several government and bank programs that do not require that the loan be delinquent and do cover loans that are for more than the house is worth. One of those programs is called "Enhanced HAMP." Unfortunately, these programs vary depending on who "owns" the loan. __The big 5 banks: Bank of America, Wells Fargo, Citigroup, JP Morgan Chase and Ally financial (formerly (GMAC) are all parties to a $25 Billion dollar settlement with 49 Attorneys General that requires them to make loan modifications including principal reductions. If your clients' loans are with any of these, then you should inquire if they are eligible under the Settlement Programs.
Their is with ocwen.
I am not impressed by the arguments put forth by those at the conference you attended Harvey. It was those geniuses on WALL STREET, not the government who created this market.
The experts were not describing the cause of the problem; merely pointing out that the cure for the problem is NOT more government intervention into the markets. Markets like stability. But markets can adapt to changes and new rules. But when those rules change every few months, the markets do not have time to adapt and a patchwork of inconsistent and confusing rules evolve to everyone's detriment. For example: HAFA, HARP, HAMP, enhanced HAMP, then all the in-house lender modification programs, both voluntary and with respect to the big 5 lenders, mandated by the AGs Settlement Agreement. All very confusing.
It was WALL STREET and BANKS…… I agree with you Earl….
[...] The “House Lawyer” Talks Solving Housing Mess (If Government Stops Helping) MRIS is excited to announce WashingtonPost.com’s “House Lawyer” and regular real estate columnist, Harvey S. Jacobs, to join MRISblog.com as a contributor. Harvey S. Jacobs… [...]
The mess was created by the banks because they did not have rules (the rules had been eradicated little by little over the lasrt 30 before this crisis). That created the crisis. It also created bilionairs like they never existed before, all compliment of the common worker who, over the same 30 years, kept loosing earning power and purchasing power. If that situation does not call for a reversal of course like the one the President has tried with partial success due to the almighty opposition, and a revision of the system, I dont know what will. The taxes that they dont pay, the rest of us have to pay. They dont use the savings to create more jobs, or better paid jobs, they used them to enrich themselves more. In fact one of the problems we had starting we the Reagan years is that wealth was being create but the poor kept getting poorer, and later on the middle class started to loose ground. To advocate for cuttings in education and social programs is suicidal, will only bring more poverty and more violence (when the poor have no way out).
Oh! but some people think that is a good thing….an opportunity to make more money….lets not forget that jails and guns are an indutry.
To run a good home we need a decent salary and to run a good Government we need to pay taxes.