Home sales are coming back in most parts of the country, Kentucky included. But they could be coming back faster if congress would make minor changes to regulations affected mortgages. Specifically, the problem with qualifying for bridge loans needs to be addressed.
The economy is improving, but people are still nervous, and so are lenders. Many people who are attempting to sell their homes and buy new homes are finding that they're not qualifying for the bridge loans they need to temporarily carry two mortgages.
It's the rare person indeed who has the means to pay two mortgages simultaneously. This means that millions of would-be home buyers are stuck, unable to get the bridge loans--or "gap loans," as they're often called--to let them buy their new home while their existing home waits to be sold.
There are many proposals to remedy this problem. For realtors in Kentucky and Indiana, the problem with tight credit for those changing homes is affecting our sales. A call to our congressmen is in order.
Wednesday, July 22, 2009
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