Fear of purchasing a new home has infiltrated the housing market, largely in part to the foreclosure fiasco and the banks’ moratoriums on foreclosures.
Conditions are right for buying a new home now with low prices and low interest rates but new home buyers are afraid they will enter into a quagmire of problems with their mortgage lender.
Who can blame them?
First, there was the mortgage collapse where everyone and their mother were being approved for mortgages they couldn’t afford.
Next was the robo-signing debacle where bank employees were approving foreclosures without looking at the paperwork.
The moratoriums are in place so the banks can go back and be sure they didn’t do anything illegal with all these thousands of foreclosure files and many of the larger banks in the US are holding off on sending eviction notices for the two weeks surrounding the Christmas holiday.
So, when faced with this kind of uncertainty from the banks, who can blame home buyers for being even more careful with their housing investments? In the long run, these home buyers will be grateful because it gives them more time to educate themselves and be sure they can afford a new home.
Even experienced investors are using caution when buying foreclosed homes because they don’t want to mired with legal trouble should the bank discover the foreclosure was illegal.
But it will take many years for the banks to earn the trust of their customers again when it comes to mortgage issues.
Read the whole story here.
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