Real estate magnate turned U.S. President, Donald Trump has come into office with new policies, many of which do not come as a surprise to the American public or the world in general. Economists and public affairs analyst have assessed the policies and have come up with several predictions, especially concerning health care and the real estate industry.
USHUD.com, a foreclosure aggregation and research company predicts a rise in foreclosures as the Federal Government under President Trump will begin, according to USHUD.com to gradually increase interest rates in the second quarter of 2017.
USHUD CEO, Michael Urbanski reports that all indicators show that the percentage of foreclosures will increase from the current corrected number of 5.5% to 6.5% or higher as interest rates climb, triggering adjustable rate mortgages (ARM’s) to reset. According to Mr. Urbanski, “The number of foreclosures is poised to spike in the coming years under the Trump administration mainly because of the number of Adjustable Rate Mortgages that will be adjusted upwards as interest rates increase” According to Urbanski ARM’s will necessarily be set higher in next 24 to 48 months after the rates begin to increase. The policy and focus of the current administration tilts toward an increase in interest rates and therefore foreclosures in order to improve the overall economy.
“While an increase in foreclosures is not an absolute, it is far more likely than not” says Urbanski. This will most likely result in more Americans losing their homes, moving to smaller homes or cutting down on other expenses to augment their increased mortgage payment. On the other hand, an increase in the number of homes going to foreclosure will increase the number of foreclosures on the market and provide first time buyers and investors in the real estate sector more home for the same dollar invested, or at least buy the same home at a lower price.
The predicted increase in foreclosures in the coming years could therefore be a positive for savvy home buyers. Interest rates should remain at historically low levels for years to come as they are incrementally corrected over the next several years however, owners with adjustable rate mortgages are urged to refinance into a fixed rate mortgage sooner rather than later by Mr. Urbanski.
USHUD.com provides foreclosure listings and research regarding foreclosures, mortgage rates and other predictors of real estate futures ensuring that key stakeholders in the real estate sectors have free access to information on HUD, VA and other types of foreclosures.
USHUD.com is a privately held foreclosure data aggregator and research company which manages the National USHUD.com Cooperative of real estate agents and loan officers. The USHUD.com cooperative was created in 1999 in order to improve and maintain ongoing communication channels between asset management companies that maintain and market foreclosures and the general public to ensure greater transparency and coordination between public and private entities.
Company Name: Heavy Hammer
Contact Person: Michael Urbanski
Country: United States
Filed under: foreclosure |