Real estate recap: Week of real estate in review (Edition VI)

Meandering down real estate lane, we have picked up news on the mortgage horizon along with a human interest story that may remind you, "There's no place like home." Sit back, relax and let us provide you with Connect2Agent's Real estate recap: Week of real estate in review.

Democrats bust a move, Republicans want to bust the bill

On Wednesday, the Democrats' $15 billion Housing bill passed the Financial Services Committee 38-26.  The bill would give money to cities and small towns with the highest foreclosure rates; half of the money would be given in loans and the other half would be given as grants. This would be used to help distressed homeowners refinance their mortgages and to allow the local city government to buy and rehab foreclosures. Republicans and the Bush administration see this as an unnecessary bail-out for mortgage companies and homeowners alike and have voiced their disapproval of the bill loud and clear. 

If the bill does manage to get through the ranks, it would likely go through some major reform in order to avoid the big "V" and pass go. Connect2Agent will be following this bill and its outcome--stay tuned.

Fannie Mae's reins just got tighter

Earlier this month, Fannie Mae announced its new requirements to purchase loans. It won't consider purchasing loans that are under a 580 credit score. This big gun is also requiring borrowers to be five years past foreclosure in order for Fannie Mae to consider buying their loan. The requirement used to be four. 

The message is loud and clear...credit-worthy buyers will have the right of way. Borrowers who don't work on their credit will be sitting curbside.

There's no place like home

This is not the first story of its kind to grace the news--we have heard of residents in Florida who wouldn't budge, not even for $500,000. Now it's the residents of Youngstown, Ohio who are digging their roots firmly in their native soil. The city would like to relocate residents in the East and South sides of the city to more developed areas so it can save on now-unaffordable city services like garbage pickup and street lighting. They are offering residents in these areas a $50,000 incentive to move.

But many of these residents are hanging on strong, claiming a loyalty to the place they've called home for so long, some even stating it is where they intend to die. 

For now, the city of Youngstown and its East and South Side residents stand on opposite sides. The city is hoping a potential $20,00-30,000 mortgage payoff offer will get residents to walk the line.

What's your story? Connect2Agent wants to know

Are you local to Youngstown, Ohio or live in a city that is going through restructuring? Connect2Agent wants to hear about your story. Speak your mind by commenting below or email us.

If you enjoyed this post, you may want to read:

• Real estate recap: Week of real estate in review (Edition V)
• Real estate recap: Week of real estate in review (Edition IV)
• Real estate recap: Week of real estate in review (Edition III)

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Posted by Rebecca D. Levinson