A recent Wall Street Journal article, Emotion Drives Many Defaults, reviews interesting new data on why people are defaulting on mortgages. For some, default is a rational response by homeowners who owe far more than the current value of their homes. For others, the reasoning is purely emotional, ranging from frustration and helplessness, to anger with banks and the government.
The article also notes that the â€œstigma against default remains robustâ€ with the majority of people continuing to make payments for as long as they can, but I wonder how long this can continue. Loan modification programs are not providing much help or hope, and seem to be wearing down homeowners who really want to do the right thing.
The article suggests â€œa rent based loan programâ€ to help homeowners who are in trouble. Itâ€™s an interesting and viable idea, but only a drop in the bucket. That said, every drop helps fill the bucket. Iâ€™m starting to see small improvements in the real estate market. In my neighborhood (Los Angeles), houses on the market are selling faster and the values seem to be increasing slightly. I am cautiously hopeful that this is the start of a more controlled recovery.
Do you see signs of improvement in your area? Do you have great idea on how to profit in the current real estate market? History shows that the market will rebound, and will be stronger than ever. It just takes time. And, now is a great time to learn about real estate, and to get your real estate license. To find out more, check out the links below.
To find out how you can help someone start a career in real estate, check out the Real Estate Centreâ€™s Jump Start Program program. This program includes the courses required for a real estate salesperson license, along with our one day exam prep class.
If youâ€™re a licensed real estate sales agent, and want to make use of the current slow conditions to get a brokerâ€™s license, the Real Estate Centre offers a variety of courses to help you achieve the goal. Find everything you need at the following link: Broker’s License Courses.
Need to take your salesperson or broker exam, and just donâ€™t seem to get around to it? Enroll in our Exam Prep. Over 90% of our students pass their real estate licensing exams, on the first try.
Whether youâ€™re new to real estate, or you’re a sales agent ready to become a broker, the Real Estate Centre has a program for you. Order online at www.realestatecentre.biz, or give us a call at 310-410-9718 and let us customize a program to meet your needs.