• Allied Mortgage Group | Philadelphia, PA | Peter Buchsbaum

The debt ceiling and your real estate market

Real Estate Reality Radio WBCB 1490AM

Peter Buchsbaum Gateway Funding Mortgage Banker Horsham PAHello, and welcome to Real Estate Reality Radio. The most important hour of radio every Friday from 9 to 10 on WBCB 1490 am. Thank you for joining us. For those of you who are new to the show I have spent the last 40 years in the real estate industry both as a realtor and a mortgage banker. The show is dedicated to dispelling the myths associated with Real Estate and finance in your marketplace.

Within every market there are obstacles and solutions on the path to tremendous opportunities. I believe that most people are looking for practical advice. Please feel free to call 215-740-8999 or visit peterbuchsbaum.com.

Please join us live on the web at www.wbcb1490.com or on your FREE app Tune In Radio from 9:00am to 10:00 am every Friday.

So last week we were joined by Angela Yost and Dan Rostelli of Mold Detection & Remediation Specialists, Inc.

This week in the market the news was dominated by you guessed it. The government shutdown and the impending debt ceiling crisis. The first was “debt ceiling scenarios”. First in normal activity traders and Washington try to keep the markets calm. Not this time. This time they are sounding the alarms and the markets have remained calm. What happens if the ceiling is not raised? It’s hard to get a real answer to that question. 38% of Americans think we should not raise the limit. The best answer to why raise the limit sits in the costs of not paying our bills. The estimation is that a default would cause a $30 billion cost monthly in interest. Can the Constitution solve the gridlock? There has been talk that the 14th amendment could answer the riddle. The 14th amendment states that the validity of the public debt of the United State shall not be questioned. So the president has a constitutional obligation to pay its bill that Congress approved. Gridlock is a kind name for this mess. Who would have guessed it but Fannie Mae has actually eased up on some requirements in the shadow of the government shutdown. As we have discussed on many occasions lenders that sell to Fannie Mae, Freddie Mac , and HUD need tax transcripts from the IRS to prove the borrowers income’s validity. With the IRS shut down these transcripts are not available. Fannie Mae, Freddie Mac and HUD have relaxed this rule until the government is back in action.

Today Eddie and I are on our own wrestling with the impact the government shutdown has on the local real estate market.

Please join us live at www.wbcb1490.com for the open discussion about how mold affects your health and the value of your home.

In combination with CBS and WPHT 1210 am we have also been fortunate enough to have been asked to write some articles in “Local Living Magazine” to explore some of the questions you all ask us and the answers we provide. Look for your latest issue this month. For a FREE subscription please email us.

Each week we discuss the myths of the mortgage market. It is not about rate. A higher rate with no mortgage insurance may provide a lower payment.

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