Strategizing for possible housing bailout

2 Replies

Hey!

Recently came across some whispers of Biden possibly bailing out the housing market by allowing forbearers to extend their mortgages for an additional 40 years (basically anyone can claim they were impacted by COVID and extend their mortgage). Not very sure of the specifics on the bill, but curious if anyone has any info on this and how it might possibly change the game for newbies like myself looking to get into an already competitive market for the first time. Most importantly, how might someone new strategize to get into a high-priced market if this legislation passes?

I'm specifically looking to invest outside of the LA area so any California specific detail would be great.

Thanks!

Shawn

Originally posted by @Shawn Blake :

Hey!

Recently came across some whispers of Biden possibly bailing out the housing market by allowing forbearers to extend their mortgages for an additional 40 years (basically anyone can claim they were impacted by COVID and extend their mortgage). Not very sure of the specifics on the bill, but curious if anyone has any info on this and how it might possibly change the game for newbies like myself looking to get into an already competitive market for the first time. Most importantly, how might someone new strategize to get into a high-priced market if this legislation passes?

I'm specifically looking to invest outside of the LA area so any California specific detail would be great.

Thanks!

Shawn

 There are already options to redo terms on your mortgage if you are in forbearance, but not out to 40 years. Legislation implies that mortgage companies would be forced to accept 40 year refinance terms. That is massive government overreach. They are essentially forcing modification of contracts. This would be expensive for either the home owner, bank or tax payers. It seems like it would be bad for new home buyers or investors, especially in expensive markets. People are less likely to see their home if a financing program makes it affordable to keep it. You will be better off if this doesn't come to pass.

Originally posted by @Shawn Blake :

Hey!

Recently came across some whispers of Biden possibly bailing out the housing market by allowing forbearers to extend their mortgages for an additional 40 years (basically anyone can claim they were impacted by COVID and extend their mortgage). Not very sure of the specifics on the bill, but curious if anyone has any info on this and how it might possibly change the game for newbies like myself looking to get into an already competitive market for the first time. Most importantly, how might someone new strategize to get into a high-priced market if this legislation passes?

I'm specifically looking to invest outside of the LA area so any California specific detail would be great.

Thanks!

Shawn

 If you are going to buy I would buy ASAP


if they force the 10 year extension house prices will just continue to go up