If you watch the news or read anylists reports on the economy and the real estate climate as a whole you will get a varying degree of how the country is doing. Throughout the United States, there are few metropolitan area's that are doing well. As a matter of fact most are hanging on & in some cases there are cities that keep trending downward. Seattle/Tacoma is but one of those area's. Foreclosures have steadily increased since 2008, and the realtors dont see a slowing down. However East of the Mountains in Wenatchee, Yakima, and Spokane, the trend is holding steady. Those markets have held there ground, yet thats not to say that they havent been hit hard.
One could conclude that were not out of the woods yet. We very well could see a dip in the economy, as the state of the country is very fragile to say the least. If the results from the upcoming elections dont put some confidence in the consumers, we could see an even more stagnant real estate market. More qualified buyers may choose to rent instead of purchasing. Not to mention the (major) banks are overwhelmed and under qualified. This holiday season will be heavily scrutinized by analysts to see how were trending as a nation. The elections will have passed and maybe the bank accounts will open up a bit, and spending will take place. Dont Count on it though....... we still have some tough, but manageable times ahead of us.
The upcoming November political race has much implications for those of us in the mortgage Industry. Unless you work for a Bank that is. You see the banks are not held to same High Standards that a broker is. For a broker or loan specialist in a brokerage is held to yearly continuing education, testing, and fee's. Yes Fee's. As loan specialists and brokers we have to PAY the state that we are licensed in, in order to retain our jobs. It should then come as no suprise then that the BIG BANKS are paying legislators to ratchet up the regulation against its main competition. The Mortgage Brokers.
You see, the average time for a bank to close a real estate transaction is roughly 90 days. Yes 90 Days. The benefits of dealing with a broker are so much more obvious than the bank option. As specialists or brokers we have the ability to monitor the Entire loan process with the lender we are placing your loan with. As specialists or brokers the communication lines are always open & I pride myself in Client satisfaction, and that begins with the highest level of communication. My clients do not complain that I update them too much. We offer more agressive pricing and have more knowledge about the loan process to pass along to our clients. Your lucky if you can get a return call from a large or major lending institution. Creekside Mortgage, Inc. regularly closes transactions within 25 Days. YES 25 DAYS !!! I promise you, most Large lending institutions Can NOT close a power window inside 25 days.
So when your voting this election year........please educate yourself. The people that call the mortgage industry a career; the people that strive to go above and beyond at the brokerages, the little guys..think about our livelihoods and what it is we can offer.... Think about the politicians that are getting Large sums of money from the big banks. Its pretty obvious who they are. Just do a little investigating and you'll soon figure out who's doing what, and what their agenda is. When the legislators regulate your pay.......you have to wonder what is behind that madness and realize once again.....were being stripped of the freedoms this country was based on. If legislators can demand that you accept their (government) health care, and they can also regulate your commission pay....... I ask this. Whats next America??
The delay in foreclosures is not a good thing. Yes, foreclosures are a bad thing, but delaying it is even worse. This weekend, when you're at the Halloween craft fair (or "faire" if you live in a high income area), and someone asks you, "What's the big deal?" you can explain it like this. Those servicing companies who have put a moratorium on foreclosing on the property often times still owe the ultimate investor the scheduled monthly interest, based on their contract. And if the loan is possibly subject to a buyback situation, the originator of the loan (whoever sold it to Chase, for example) is certainly going to argue that it is not "on the hook" for interest charges that Chase voluntarily stopped making and thus owed.
The current foreclosure issues certainly increase uncertainty - and markets don't like uncertainty. Bank stocks are down, and they continue to hold on to trillions of "lendable" money because of nervousness about the future. Chaseannounced that it would now be reviewing 115,000 foreclosure cases in 41 states. PHH's president and CEO stated, "PHH Mortgage is actively cooperating with its regulators, is responding to such inquiries and has completed a comprehensive review of its foreclosure procedures. Based on this review, PHH Mortgage has not halted foreclosures in any states and has no plans to initiate a foreclosure moratorium." This is just going to pro-long the recovery period, and we're going to see a massive slowdown to our already Slow real estate market. Hang in there folks, for there is always light in any Dark period, you just have to be persistent, patient and look for the shifts and act accordingly.