I've quoted an article here regarding Fannie Mae foreclosure help. It may seem totally unrelated to Georgetown real estate, but the fact is that our market will improve when the "move-up" market improves. Helping people avoid foreclosure will not only those individuals, but will also keep their properties off the market, and thereby help reduce overall inventory. As inventory is reduced, the competition for purchasing properties will increase, more people will want to buy, and from the entry level part of the market, there will be push upward on house purchasing. While we are fortunate to be in an area where house values are high, and those values have not been affected quite as much as many other areas, we still suffer from the overall low number of sales.
For example if our current President brought someone with him from Chicago, that person probably has a house in Chicago to sell. While that person might very well want to buy a house in Georgetown, it is difficult to do so without selling the house in Chicago. Until there is a move-up buyer in Chicago to buy that house, our "person" won't be able to sell there and buy here.
Here is the article...
Fannie Mae offers help to buyers of foreclosed homes
Washington Business Journal - by Barton Eckert Contributing Writer
With a large inventory of foreclosed homes acquired during the housing slump, D.C.-based
is offering up to 3.5 percent in closing-cost assistance to potential buyers.
Fannie Mae (NYSE: FNM) is the largest U.S. mortgage finance company. As an alternative to a closing-cost credit, Fannie Mae is offering an equivalent amount in the buyer's choice of appliances.
"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president of credit portfolio management. "Many families are taking advantage of the federal homebuyer tax credit to buy a new home, so this is a great time for Fannie Mae to offer some additional help."
The offer is available to any owner-occupant who closes on the purchase of a property listed before May 1, 2010. Properties eligible for this incentive are listed on HomePath.com.