If you have been waiting or searching hard to find out the details of Obama’s new housing plan which was expected last Thursday you are certainly not the only one.
While there was a lot of talk about jobs and tax credits no solid new housing plan seems to have been announced, proposed or rolled out. However, this is far from bad news for real estate investing, nor unexpected.
What Obama did say was “To help responsible homeowners we’re going to work with Federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4% – a step that can put more than $2,000 a year in a family’s pocket, and give a lift to an economy still burdened by the drop in housing prices.”
What does it mean for real estate investing? As expected this proposed idea seems to simply be aimed at those who are still up to date and in a decent equity position, in the hope that they will take this extra $2,000 and spend it to boost the economy. Not likely right.
On the up side for real estate investing pros this clearly signals to sellers that nothing serious is going to be done to further stall foreclosures or provide a magical rescue that will wipe out their debts and keep them in their homes. Hopefully this will result in distressed homeowners finally realizing that they must take action and sell.
This is your chance as a real estate investing pro to strike while the iron is hot and beat the rest of the pack to these home sellers to cut great deals. It is definitely still a buyers market, so get out there and take advantage of it while you still can!