Daytona Beach Home Market - What Does Foreclosure Freeze Mean?

Daytona Beach Real Estate Market Impact

The announcement made today about six large large mortgage lenders freezing foreclosures for 30 days to attempt to workout home owner’s loan could impact troubled home owners with the following mortgage lenders:

• Citibank
• Bank of America
• JP Morgan Chase
• Countrywide
• Wells Fargo
• Washington Mutual

This is an attempt by the lenders to save these loans. I applaud this effort as a start, but unfortunately much more is needed.

So, what is the impact to the housing market. Any loan that does not go into foreclosure is good for the market. It keeps another house from being hitting a saturated market. There are too many homes on the market which is a factor in driving homes prices down. See my Daytona Beach Real Estate Report for January for more information on our area.

Many people are walking away from the severe increase in mortgage rates from adjustable rate mortgages (ARMs). They just stop paying their mortgage and wait for the foreclosure process. If the lenders can rework the loans so that the rates are lower than the ARM rate, these people may be willing to stay and pay the lower rate.

The combination of fewer homes coming on to the market and more people able to stay in their homes is good. I hope it works out well and will be an example for those lenders who are refusing to workout loans. I’m interested in seeing the reports over the next 30-60 days. I’ll blog here what is reported. Sign-up for email notifications weekly, or better sign-up for an RSS feed from the left menu <——-.

You can get more details at CNN Money.

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