Great News for Our Economy

Nov. 1, 2008
I’ve said it before and I’m saying it again: The housing market is the fuel that will drive our economy forward.

The sooner we decrease the number of foreclosures in the Valley of the Sun, the sooner home values will stabilize. People will develop a better perception of the housing market and start buying and selling homes again. To make this come to fruition, lenders need to seriously look at modifying loans of distressed home owners to a monthly mortgage that is affordable to them. By doing so, homeowners will have money left to spend and consumer spending will increase. As a result, businesses will increase their revenue, expand their services and hire more workers.

There was a welcome surprise in Saturday’s Arizona Republic — what I had hoped for is coming together. The article reported that Bank of America is halting 2,000 foreclosures in the Valley by initiating a loan modification plan for borrowers. Rick Simon, spokesman for Bank of America, said they will contact homeowners once their home-retention program is ready by early December. About 13,000 borrowers will benefit from the loan modification program, according to the Arizona Attorney General’s Office.

Bank of America hopes that other lenders will pick up on this effort. But for now this is great news for the housing market and the economy as a whole.

Click on the link below to view The Arizona Republic article:
http://www.azcentral.com/news/articles/2008/11/01/20081101foreclosures1101

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