Looking over the Horizon, is where opportunity sits…..

We will know much more today about where the government is heading with regards to assisting the economy and housing in recovery. There are a couple of key components which we need to look for, firstly, if the loan amount for government backed loans increases to either $675K or $725K, then the Jumbo market which has been largely forgotten over the last year, will have a very strong next 6-12 months, and the large amount of consumers in this space with 780 FICA’s and some equity left, will be able to refinance, purchase, etc…

The other issue, which is more wide spread is how the government will deal with flood of foreclosures, the lack of liquidity and the fact that the vast majority of foreclosures we see here in Title are not hardship problems, but much more so the consumer making a business choice to walk away from their home, as they are now, $100K, $200K or sometimes $300K upside down in their property. If the government can use the TARP money to allow consumers to refinance at current values, then you will see folks stay in their homes, as they are back to at least 0 and this will in turn slow foreclosures, which will reduce inventory and start to bring us back to a normalized market. It sounds good in theory, but something tells me, it is never quite that easy….


Steve de Laveaga
Senior Vice President of Sales and Marketing
Fidelity National Title
(Maricopa, Pinal and Coconino County)