San Diego Foreclosures Could Benefit from Federal Reserve Lending Program
Category: San Diego Real Estate
Published: Tuesday, August 18, 2009
The Federal Reserve Bank has extended a program geared at jump starting lending for household consumers and businesses through March 31, 2010. This will free up tens of millions of dollars for mortgage purchases and encourages banks to start lending to homebuyers again, specifically impacting buyers of affordable San Diego bank homes who have had trouble obtaining mortgage financing.
The Term Asset-Backed Securities Loan Facility, or TALF program, provides funds to investors to buy up student loans, credit card assets and business loans secured by the Small Business Administration. This frees up the investors personal assets for use in mortgage lending and in particular, foreclosures purchases. San Diego foreclosures resales have slowed in recent weeks due to lenders tightening their credit criteria, and first time homebuyers, one of the strongest segments of the San Diego County foreclosures market, have had difficulty finding mortgage financing.
3,000 San Diego Bank Homes Still Available
The TALF has been closely watched by economists as a key to financial stability. With investors using these federal funds for asset-backed securities, the Federal Reserve announced up to $1 trillion would become available for households and personal borrowers, particularly in the mortgage market. This is great news to borrowers looking at the more than 3,000 San Diego County bank homes still on the market.
Interest rates are remaining relatively stable, and affordable in the low 5% range, while median home prices are hovering at 15 year lows. For example the median home price among downtown San Diego foreclosed homes is $370,000 while coastal Oceanside bank homes are currently listing at $207,000. El Cajon foreclosures are stable at $362,000 and perhaps the best bargain among San Diego bank owned homes can be found in south Escondido, where prices are $197,000, an astonishing 46% below what they were a year ago.
If you have been contemplating buying an affordable San Diego County foreclosed home, take advantage of the unique opportunity in today's mortgage market, where federal programs are funding other lending across the economic spectrum and freeing up lenders funds for use in the mortgage industry.
Contact the neighborhood foreclosure specialists at Oak Tree Realty Group San Diego today. Our team specializes in San Diego foreclosures in every community and our foreclosure experts can be reached at 1-800-516-7791 for a custom showing.
A fair appraisal is critical to closing the deal on any real estate transaction and even more important when purchasing San Diego foreclosures. The team at Oak Tree Realty Group San Diego offers these tips on how to get the most out of your appraisal.
All the numbers point to increased demand for San Diego foreclosures, from less new housing permits to lower numbers of Inland and North San Diego bank homes. The foreclosure experts at Oak Tree Realty Group San Diego put the numbers in perspective and direct buyers to the best bargains on San Diego County foreclosures.
San Diego County foreclosures buyers received a big helping hand from the federal government earlier this year as nearly $8 million in Neighborhood Stabilization funds were awarded to several agencies to assist with down payments and efforts to buy and rehabilitate San Diego County bank homes. The team at Oak Tree Realty Group San Diego explains what the program is and how to take advantage of these federal stimulus dollars.
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