The federal government may try to nudge lenders to approve more short sales soon. But will the feds really be able to convince lenders to clear the path for more of these deals? Here's an interesting snippet from the online chat held Thursday with the Post's Renae Merle and Michael S. Barr, the Treasury Department's assistant secretary for financial institutions.
Even though you cannot get rid of your mortgage payments through bankruptcy, about one in five people who went through mandatory pre-bankruptcy credit counseling said they were doing so to avoid losing their homes to foreclosure, according to Consumer Credit Counseling Services of Greater Atlanta. That organization provides counseling throughout the United States.
The inventory of homes listed for sale in the Washington metro area dropped to just 5.1 months' worth in June, according to a report from Delta Associates, a real estate consulting firm, and Metropolitan Regional Information Systems Inc., the local multiple listings service. That's an important milestone for the local housing market. Analysts usually cite a six-month supply as normal for a balanced market. Five months' supply takes us out of a buyer's market and toward one that favors sellers.
The verdict is delivered as if it's a clear-cut conclusion: Being near a high-voltage electric power line does not affect home values. But reading beyond the headline in the current issue of The Appraisal Journal reveals a different story. Their "no effect" message is a surprise. Electric lines have to go somewhere, of course, but few people relish the idea of living next to big metal towers that carry high-voltage current. It's logical to think there might be at least some downward tug on home values. And plenty of people may be happy to buy a nice house at a bit of a discount because it's next to power lines. Markets tend to sort such things out. But a closer read of the actual report on which the story is based, High-Voltage Transmission Lines: Proximity, Visibility, and Encumbrance Effects, reveals that this is hardly a trustworthy research paper. If appraisers in the field rely on this article, they could produce skewed valuations.