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03-01-2010, 11:29 PM #1
Renter
- Join Date
- Mar 2010
- Posts
- 13
Refinance/Modification Program, affect Realtors?
Hi,
I'm doing a research for my Real Estate class and my question came up is where will the opportunities be for new licensees or how the two new programs (refinance/modification program) affect the real estate profession in CA.
To me, the programs and the profession have no correlation. Please let me know otherwise. Do the programs actually affect the real estate folks in any way? Thank you so much for sharing your expertise!!
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In my experience in Northeast Pa, modifications in general affect the value of the subject home by very little. For example, if a couple refinances their home @ current value, well, current value isn't the same as the value in which they bought it is it? No. If they modify their mortgage to original price, it only saves them a little in interest, that's all. After PMI and HOA fees and taxes and upkeep, it's almost a wash and not worth modifying a mortgage to original price/value.
Current value of homes have dropped do to the recession, so it matters not really which of the two mods the couple takes. What used to be worth/bought for in 2005 for $186k is now worth $125k. Fine, refinance at current value. The couple only paid down their mortgage to $178. They just modified their mortgage at current value: $125k. Where are they getting the $53k to give to their original mortgage holder? Exactly.
CM
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