"It will take years to work through all the troubled mortgage loans in the foreclosure pipeline, but this is the first indication that the number of loans entering the pipeline is declining," says Mark Zandi, chief economist for Moody's Economy.com.
While is the Mexican Real Estate Market we hear that “The Mexican Real Estate Industry is suffering like never before…” according to Jose A. “Tony” Ruano, author of The Real Estate Book.
But the reason for this is not only the fact that the prices of Mexican Real Estate Market have drastically reduced by the market economy, but the stringent mortgage policies being placed on new and used homes that the Mexican Banking Industry is applying to mortgage clients.
So while the US Government and Mortgage Banking Industry is toughening their mortgage borrowing standards to ensure better qualified buyers to purchase homes and ease the foreclosure bubble, Mexican Bankers are simply toughening their mortgage lending standards, so as they now say in the real estate industry in Mexico, “the problem is not in selling the property, but acquiring the financing to close the deal…”.
So while the USA Banking Industry has taken the following approaches to control the further burst of the Housing bubble:
• Tougher lending standards to keep riskier borrowers from getting mortgages.
• Mortgage modifications to help tens of thousands of troubled homeowners stay off delinquencies.
• A more stable job market to decrease mortgage delinquencies being that the unemployment rate has held steady at
9.7% in March, and non-farm jobs increased by 162,000 in the USA, while;
The Mexican Banking Industry has adopted a different approach, or a plain and simple approach,
• Lower LTVs made available for the acquisition of the property.
• More stringent mortgage qualification standards for new borrowers.
• Less accessible cash to developers to build and promote new housing projects.
But the foreclosure “ghost” won't disappear so quickly. In the past two years, more than 5 million homes have received foreclosure notices, and more than 3 million are expected to get them this year, according to RealtyTrac.
While, in Mexico, the only issue affecting the mortgage lagging market is the availability of mortgage funding, or lack of it, rather.
All in all, this is a good time to purchase property “on both sides of the border, whether the grass is greener on either side, is just a matter of perspective”.
This article is provided by Enrique (Henry) Saldana – Mexico Home Realty Center/Advanced Mortgage Inc. (in the USA) Cel: (984) 116-8528;
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
, www.mexicohomerealtycenter.com, you may contact us with any questions you might have with regards to Mexican National Mortgages (Peso Loan) and Non Resident/Foreign National Mortgages (USD Mortgage Loans).
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