Federal Reserve Stands Pat on Low Interest Rate

In a recent article from RIS (Real Estate Information Systems), it was stated that there are signs of "winding down" on Federal programs available for the housing crisis. It noted that, "although the central bank will continue with its previously announced plan to buy $1.25 trillion of government agency mortgage-backed securities to support the housing market, the policy-setting committee “will gradually slow the pace” of this and some other purchases." It went on to say that policymakers announced plans to "wind down" their program of buying $300 billion of Treasury securities, another emergency measure that the Fed undertook to drive down long-term interest rates and prop up the economy. This is a clear signal to Homeowners that if you're looking for assistance with your mortgage through a Federal program, you better act soon. A perfect example of this was the Cash For Clunkers program. Just like the HAMP, great program but when the money is gone it's gone.

The article also pointed out that the Central Bank intended on keeping interest rates low. What this means to you is that if you're doing just fine and your credit score is great, chances are you can refinance or purchase a home and get a great interest rate. For the other 90% of the Country, it means that "available credit" from the banks is going to be very limited for a long time. If banks aren't making much money from their existing loans, then they don't have the means to put out more money for additional loans. This means that trying to refinance or purchase a home is going to be very difficult for quite a while. So although it's a Real Estate Cornucopia out there with Foreclosures, unless you're at the Top already, you're not going to have the capital or resources to take advantage of it. This is a perfect example of the "rich getting richer". You basically have a handful of people that have all of the money (banks, investors, etc...). They will keep as much of that money "by any means necessary". Which includes but is not limited to: not cooperating with homeowners for loan modifications, charging erroneous and excessive fees, threatening and misleading their customers, and spending quite a bit of money (commercially and politically) to cast a dark shadow on the loan modification industry.

If you go to buy a car and start talking with a car salesman, let him/her show you a vehicle. Once they start asking you "closing questions", stop them and tell them that you're going to call your friend that's in the car business and ask him what he thinks............like the banks are doing, you'll get a ton of reasons of why you shouldn't call your friend and how dealing with "just you and him/her" is the best way to go. If they can keep you up against the ropes with nobody in your corner, they're sure to win the fight. Moral of the story.......Don't wait for things to "just get better", they won't. Don't expect your lender to just hand you everything on a silver platter, read the news, it's not happening. Don't let your lender "sell" you on the idea that you don't need any help, if you're looking for a good modification, YOU DO. Last but not least....Don't let some con artist scam you out of your hard earned money, contact PMC today and let us help you fight the good fight.