AgentIndustry News

Could mortgage handoff cure foreclosure crisis?

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

I'm not your typical homebuyer. The home I live in is the one I bought in 1981. I have not moved, although I've refinanced a number of times along the journey and I do own a second property that is a condominium rental. Not being a serial homebuyer who constantly tries to move up to a bigger home has, quite frankly, put me out of the loop on a number of very basic issues.For example, I didn't realize that home loans could no longer be "assumed" until I received an e-mail from one of my readers who had what he says was a way to solve the foreclosure crisis. The reader, Steve Hicks, a broker with Keller Williams Realty in El Paso, Texas, wrote: "A simple solution that will stop at least 50 percent to 60 percent of all foreclosures today is the assumption of all federally backed mortgages."Allowing these loans to be assumed without qualifying will result in sales and transfers to buyers. The risk in nonexistent. These homes will go into foreclosure if there...