Foreclosure Freeze

What’s going to happen with the foreclosure freeze and should I wait to buy? Gary P.

Hi Gary,
There are several things to consider, and here are just a few.
Right now, with the freeze, there may be a little less inventory to choose from. Some experts have even thought that we’ll have a little upward blip in pricing because there will be fewer houses to choose from and fewer distress sales on the market.

Most people think that if this fiasco takes too long to sort out, (there could be significant litigation) that the housing recovery will be prolonged and the market will remained depressed for a much longer period of time. What we don’t want to occur is having title insurers refuse to insure mortgages involving foreclosed homes, because then our market could simply come to a standstill.

There are a lot of buyers sitting on the fence right now waiting to buy. If these prospective buyers are not concerned about their jobs and they feel that they will have a job for the next few years, they should Buy Now. Remember that interest rates could not be better, and even if values further decline a bit, interest rates will most likely rise wiping out the benefit of the low low rates.

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3 Responses so far »

  1. 1

    […] What’s going to happen with the foreclosure freeze and should I wait to buy? Gary P. Hi Gary, There are several things to consider, and here are just a few. Right now, with the freeze, there may be a little less inventory to choose from. Some experts have even thought that we’ll have a little upward blip in pricing because there will be fewer houses to choose from and fewer distress sales on the market. Most people think that if this fiasco takes … Read More […]

  2. 2

    southwerk said,

    I enjoyed your blog post, I reblogged it. (only the first few sentences) I wish you well. James Pilant

  3. 3

    Steven Mintz said,

    I have been reading about housing prices ready to go up from the “experts” for months. I wonder how many of them are in real estate and stand to gain if this happens? Are they trying to create a situation where those sitting it out are encouraged to buy houses now before the prices go up? Add to that the historically low interest rates which may go down further given the continuing economic malaise. We’ve already been down the road of creating demand (for corporate stock) to enhance one’s own wealth. Let’s not make the same mistake twice.


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