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New Hampshire’s Housing
By Laura Knoy on Thursday, March 5, 2009.
We continue our monthly series on the economy with a look at the New Hampshire housing market. The state has been hit hard by shirking home prices and a rise in the rate of foreclosures, but there may be hope. President Obama’s stimulus package may help responsible homeowners at risk of losing their homes, and allow first time homebuyers to find a house that is finally in their price range. We’ll look at housing and mortgages and how they are faring in a down economy.
Guest
- Russ Thibeault, president of Applied Economic Research in Laconia
We'll also hear from
- Jerry Little, president of the New Hampshire Bankers Association
- Peter Wright, bankruptcy attorney, member of the National Association of Consumer Bankruptcy Attorneys, and Director of Clinical Programs, Consumer and Commercial Law Clinic at Franklin Pierce Law Center
Dean Christon, Executive Director of the New Hampshire Housing Finance Authority
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What about people that are not first time buyers but for many reasons, such as a period of unemployment, relocation, a forced short sale on 1st house, and basically just not a good credit history on paper, how forgiving are the lenders going to be??? What good are these awesome house prices if you can't get a mortgage?? I keep hearing all sorts of things for 1st time homebuyers but what about people that are just trying to get back into a house without having a $20,000 downpayment??
What do we do??
My own case: I'm current on my mortgage, for about $150,000 at 7.125% -- but I'm a freelancer, and income is slowing down. I'm afraid I won't be able to make the payments in the months to come. But my loan-to-value ratio is less than 50%, and I don't see how I fit any category of those who will be helped. Refinancing to 4% would save me a few hundred a month, which would go to "stimulating" the economy alright. A more broad-based cut in rates or principal -- across the board -- would help many more scenarios and of course put money back into the economy. Since everyone with a mortgage would benefit, there would be less carping about who "deserves" help.
Why do they only help those who are in the desperate straits of foreclosure? The newest plan seems to offer to help negotiate loan payments downward for those who may be approaching financial trouble, to something like 31% of their gross income. Suppose there's someone who's current and then loses his job -- his near-term foreseeable income is zero, so how does that apply? There are plenty of people who are using up their savings to hang on for a year or two, and need help just until the economy turns around!
Adjusted for inflation the prices of homes have remained constant until this most recent housing bubble (where prices have jumped by more than 60K). This bubble has created a scenario where our homes will most likely never be worth what we payed for them. Regardless of who is to blame, it is best for the country to remedy this situation through loan adjustment to correct the bubble. How might a home owner who has a loan not backed by Fannie or Freddie receive this loan assistance? Also, I have heard about a new home bankruptcy plan that might allow a homeowner to stay in their home.
Thank you
http://www.homehelpnh.org/