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Healing in Housing

February 19, 2013 – 6:08 pm

house vs money1In a recent report, foreclosures across the country fell sharply in January but looking closer you will find that in California they collapsed. Normally you would think this is a good report as we don’t want people losing their homes but in California the law changed at the end of the year imposing large fines and changing the way banks process delinquent mortgage payers.

To be sure foreclosures are falling but what we may be seeing is a slowing of the process because of the impositions of new laws. It may look like the rate has fallen faster than it actually has, but do not be fooled.

In the long run this is not a good thing. Delaying and making the system more inefficient has never been beneficial to anyone including the consumer. The cost of these delays will be borne by the public and likely affect the new home buyer who may find it more difficult to buy a house since banks don’t want foreclosures any more than homeowners do. Maybe the change was needed but there will be unintended consequences as there always are when it comes to new government rules and regulations.

Good Trading
Steve Peasley

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