Few investments have been a better hedge against inflation than real estate . On an annualized basis , home values generally increase in value on average at least as high as the published annual rates of inflation . The Federal Reserve must continue to keep rates artificially low or they may risk causing the housing bubble to pop .
The Federal Reserve ’ s ongoing policy of Quantitative Easing ( create more money to boost asset values related to housing and stocks , especially ) and their lesserknown Operation Twist policy ( the simultaneous buying and selling of longterm and shortterm bonds to artificially drive down mortgage rates ) that they seem to turn on and off as needed with or without notifying the general public . With record high government debt levels today , the Fed has really no choice but to keep pushing inflation higher because one of their biggest fears is massive asset deflation like seen in Japan in the early 1990s after their own Quantitative Easing program failed miserably .
Rising inflation trends for various consumer goods and services like food , clothing , cars , and gasoline are not usually viewed favorably . However , rising home values tied to meteoric inflation trends are welcomed by homeowners who see their home values rise $ 50,000 to $ 100,000 + in a year .
Yearoveryear inflation trends for August 2021 :
• Used vehicle prices : + 31.9 %
• Energy costs : + 25 %
• Southern California home prices : + 22.1 %*
• National home prices : + 19.7 % ( a new annual US record )*
• Export prices : + 16.8 %
• Apparel / clothing : + 15.52 %
• Import prices : + 9.0 %
• July yearoveryear housing price trends * Sources : U . S . Bureau of Labor Statistics ,
CoreLogic , and California Association of Realtors
Forbearance and Loan Modification Refinance Solutions
A homeowner who hasn ’ t made a mortgage payment in several months , a year , or almost two years probably has a few options to exit out of this dire financial situation . First , they can sell the home and lease another property if their credit scores aren ’ t too negatively impacted .
In September 2021 , multifamily apartment units reached an alltime record high of $ 1,558 which was an alltime record annual 11.4 % increase , according to Yardi Matrix . For singlefamily home rentals , the monthly rents are normally much higher in the $ 2,000 to $ 5,000 + per month range , depending upon how close they are to an ocean or prime metropolitan region .
Or , the homeowner can attempt to save their home and end their existing approved or unapproved forbearance (“ no payment , no foreclosure ”) or loan modification situation , and refinance with a new loan that may allow cash out , a lower rate , and better monthly payments . The mortgage companies or lenders that will consider refinancing a mortgage which is severely delinquent are likely to request that the homeowner exit out their forbearance agreement , make a few payments , and then complete the new refinance closing .
Oftentimes , a homeowner who has been in forbearance cannot provide tax returns or more formal income verification . As a result , more lenders today may consider qualifying the borrower applicant with
Image by Gino Crescoli from Pixabay
Rising inflation trends for various consumer goods and services like food , clothing , cars , and gasoline are not usually viewed favorably . However , rising home values tied to meteoric inflation trends are welcomed by homeowners who see their home values rise $ 50,000 to $ 100,000 + in a year .
anywhere between zero and 24 months ’ worth of bank deposits while closely analyzing the averaged bank deposits . In some cases , a governmentbacked mortgage product may allow an almost “ No Doc ” loan program with a financial hardship letter that may reduce the monthly principal and interest amounts by 25 %, as recently announced by the Federal Housing Finance Agency ( FHFA ) and the Federal Housing Administration ( FHA ).
For more details in regards to these new financial solutions to exit out of forbearance and loan modification programs , refinance , and save your home , please visit my website at
www . realloans . com .
MEET RICK TOBIN
Rick Tobin has a diversified background in both the real estate and securities fields for the past 30 + years . He has held seven different real estate and securities brokerage licenses to date , and is a graduate of the University of Southern California . Rick has an extensive background in the financing of residential and commercial properties around the U . S with debt , equity , and mezzanine money . His funding sources have included banks , life insurance companies , REITs ( Real Estate Investment Trusts ), equity funds , and foreign money sources . You can visit Rick Tobin at
RealLoans . com for more details .
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