Live Blog: Where We Are and We Are Going Call-in Show

Welcome to WYSO’s live blog for our third My House: Facing the Mortgage Crisis call-in show featuring Beth Deutscher, Executive Director of the HomeOwnership Center of Greater Dayton, Willis Blackshear, Montgomery County Recorder and Richard Stock, Director of the Business Research Group at the University of Dayton. The show will be hosted by Emily McCord. Tonight’s show will focus on Where We Are and Where We Are Going.

Tune in to the 7:00pm show at 91.3 or at WYSO.org. If you would like to ask a question to our panel send an e-mail to news@wyso.org or call 1-800-776-0090.

6:59pm – This is Juliet Fromholt with WYSO. We’ll be starting the program and the blog momentarily.

7:03pm – The Montgomery County Recorder’s office has been reaching out to home owners who may be in danger of facing foreclosure in the coming years. By doing so, they’ve been able to see the future of foreclosure in Montgomery County.

7:08pm – The Making Home Affordable Program is a program for lenders that allows them to help homeowners work through the refinancing process. There still may be a cost, especially if you end up refinancing.

7:11pm – The Homeownership Center of Greater Dayton is one of many organizations that can assist you with looking at your mortgage documents. They can be reached at 937-853-1600.

7:13pm – There was evidence of fraud in the mortgage industry in the early 2000’s. Private backed securities were a large portion of what caused the current crisis.

7:15pm – The rise and fall of housing prices is affected by many factors: where the prices started, how far they rose and fell, area employment rates. Based on information reviewed by the Montgomery County Recorder’s office, they predict that the mortgage crisis will bottom out in 2013.

7:18pm – Our current foreclosure rate is more than 10 times what we saw in the early 1990’s

7:19pm – The Federal Reserve did a study on the Community Reinvestment Act and found that it did not have a negative impact on the housing market. Here’s an article from Business Week on that study.

7:24pm – Here’s information from the Federal Reserve on the Community Reinvestment Act

7:25pm – There isn’t much data yet on whether the commercial real estate market will be affected as dramatically as the residential market.

7:28pm – There are a lot of lease option agreements available, but the terms may favor the investor and not consider what’s best or even good for the buyer. The best option is to purchase a home the traditional way – with a mortgage through a trusted lender.

7:31pm – In some regard, the community banking model may seem more attractive because community banks have suffered less during the mortgage crisis. Many economists would still defend the big banking system, however because the diversification that it can offer. The overarching problem, however, has been regulation.

7:34pm – This can be a good time for people looking to buy, but there are several things to consider: It’s currently harder to get a loan for a home than ever. However, there are many programs available to help people buying a home. There are many local, HUD-approved counseling agencies who are offering education programs for people considering purchasing a home.

7:39pm – The above organizations can also help you look over your mortgage documents before you sign.

7:42pm – There will be some population loss in the Miami Valley due to the employment loss this area has experienced. It tends to cause more troubles for inner cities and inner suburbs.

7:46pm – In a situation where a lender forgives a balance on a foreclosure, that type of forgiveness will not be counted as taxable income in most situations.

7:48pm – It’s important to have an attorney review your loan documents before you sign them. There are several resources for affordable or free legal assistance: ABLE – Advocates for Basic Legal Equality. The Dayton Bar Association can also help refer you to legal counsel.

7:55pm – Many cities have chosen to begin demolishing delinquent properties through grant money from the Neighborhood Stabilization Program.

7:58pm – It’s advisable for long time homeowners to go back and review their loan documents to ensure they understand all of the terms. If there’s something you don’t understand or seems troublesome, seek help from a HUD approved counseling agency.

8:00pm – Thanks for your all of your calls and emails.  We do see some comments down below already, and we’ll work to respond to those in a timely fashion.