Short Sale, Foreclosure and Strategic Default


Tuesday, June 19, 2007 Don’t look for help from lawmakers Don’t look for help from lawmakers

Lawmakers seem to be taking a wait and see approach to the potential "mortgage crisis".

“We have an obligation to prevent fraud and abusive lending,” Federal Reserve Chairman Ben Bernanke said in a speech Tuesday. “At the same time, we must tread carefully so as not to suppress responsible lending or eliminate refinancing opportunities for subprime borrowers.”

However, John Robbins, chairman of the Mortgage Bankers Association, predicts foreclosures among borrowers with the riskiest credit will amount to 0.25 percent of U.S. mortgages.

“No seismic financial occurrence is about to overwhelm the U.S. economy,” Robbins said in a speech last month.

In keeping with the metaphor your blog reporter is starting to see some fault shaking in the florida real estate markets, particularly in bradenton and sarasota, but
as long as the lenders do not shut off the spigot I see plenty of buyers on the side line looking to scoop up short sales.

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