Annapolis, MD (PRWEB) October 01, 2013
Foreclosure home sales could increase later this year when the Department of Housing and Urban Development (HUD) usually moves to make foreclosed homes more affordable predicted USHUD.com Chief Operating Officer, Tim Fry.
Fry said, “HUD is likely to drop the acceptable purchase price for those homes in its inventory before the end of year. While interest rates have increased, it’s likely that home sales could rise as a result of HUD’s decision to reduce prices.The real estate market historically slows in the fourth quarter but this is an opportunity for HUD.”
Fry went on to say, “The Department of Housing and Urban Development has historically reduced the average sales price per home in the third and fourth quarters, but this year we expect to see prices reduced more significantly than in previous quarters as interest rates are on the rise. Buyers are moving faster to the market and taking less time to make an offer because they are trying to take advantage of the rates before they get any higher and HUD wants its homes to compete.”
Current federal regulations limit the inventory of foreclosed homes that Fannie Mae can offer for sale.
“The fact is that HUD does not have the same restrictions as Fannie Mae and Freddie Mac that limit the number of homes it allows to enter the real estate market,” Fry said.
Leading up to the subprime mortgage crisis that began in 2007, HUD maintained its loan qualification guidelines, while Fannie Mae and Freddie Mac eased their guidelines and have been paying dearly for it ever since with historically high foreclosure inventories. In contrast to HUD which has far fewer foreclosed homes on its balance sheet.
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