Panama City Beach Real Estate Market Conditions
Panama City Beach Real Estate Information | Market Conditions | Boating and Fishing

What is the problem?

Well I am happy to say we are not seeing much of this in the Panama City Beach area and I’d like to think that some of the reason for this is that we have responsible REALTORS(R) in our area who educate their customers with regard to lending and staying within their means. It is however, a different story on state and national basis.

There were a lot of subprime adjustable rate mortgages given out to home buyers, which appealed to buyers with minimal or spotty credit histories because they offered low initial rates that ballooned within two years.

Many homeowners took on more debt than they could handle, it’s also true that lenders, brokers and investors looked to cash in on the housing bubble without seriously considering whether borrowers could repay loans. I am sure many were told and thought they would be able to refinance. Then prices and values fell and they could not. I am sure many were not told that if they did refinance they would face stiff penalties.

I am proud to say the Vivian and I did our best to educate our first time home buyer customers and got them into 30 year fixed rate mortagages. We also did our best to make sure they did not buy more home than they could afford.

There isn’t much fine print in President Bush’s plan to help Americans with subprime mortgage woes. He’s offering a way for overextended borrowers to try and meet their rising mortgage payments and avoid foreclosure.

At the center of the modest package is a proposed change in the Federal Housing Administration’s mortgage insurance program that would enable homeowners struggling with the higher costs of adjustable rate mortgages to refinance with fixed rate federally insured loans. Homeowners who have missed payments are not now eligible for the program. But Mr. Bush would change the rules to allow a homeowner who faltered only after the mortgage jumped to a higher amount to be eligible for the FHA insurance.

The Bush proposals won’t bail anyone out of his or her problems, but they will help homeowners help themselves.

Kind regards, Capt. Mike Foate- By Land or By Sea!
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CAPT. MIKE’S CELL: 850-596-4236
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Mike Foate-REALTOR®
Prudential Shimmering Sands Realty, Inc.
400 S. Hwy 79
Panama City Beach, FL 32413

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