Waltham, MA (PRWEB) June 28, 2011
For the third time in the past three months, John McGeough and Anthony Lamacchia of McGeough Lamacchia Realty traveled to Washington, DC to meet with lawmakers and regulators to help shine more light on Short Sales. McGeough Lamacchia Realty, Inc. is a full service real estate company located in Waltham, Massachusetts currently specializing in Short Sales. They are the #1 listing and selling agents in Massachusetts and are on track to complete 450 - 500 Short Sales in 2011 on behalf of distressed homeowners.
John and Anthony again conducted meetings with the National Association of Realtors (NAR), One Senator’s office and two Congressman’s offices on Capitol Hill, as well as with the Federal Housing Finance Agency (FHFA). “Continuing to educate policy makers on the Hill about the benefits of Short Sales is a herculean effort,” said John McGeough. One of the meetings they were most pleased with was with the FHFA. Anthony states, “The FHFA has the largest say in all things Fannie and Freddie related. We had very positive discussions with them about Short Sales.” One of the biggest issues John and Anthony raised with the FHFA was the fact mortgage insurance companies are proving to be the biggest roadblocks in completing a Short Sale. Since the market has declined so much, many mortgage insurance companies would rather have the home go into foreclosure so they can postpone paying the insurance claim to the GSE’s. One recommendation Anthony made was to incentivize the mortgage insurance companies by allowing them to pay less on the claim if they cooperate on a Short Sale.
Both owners state publicly, they feel this housing bust is far from over and may not even be half way through. Since defaults continue to rise, and workout programs like Short Sales continue to be the best solution for borrowers and the market as a whole, so they are trying to urge more realtors to talk to their congressional representatives about this issue. This is especially true when you look at the overwhelming evidence that the average sale price of Short Sales is over 25% higher than the average sale price of foreclosures!
Another issue discussed was the QRM (Quality residential Mortgage) initiative that is supposed to take effect September 30th; which is still pushing for a 20% minimum down payment when purchasing. In addition, the jumbo loan limits are looking to be pulled down across the country. The mortgage interest deduction, that every homeowner takes advantage of, is also on the chopping block.
John and Anthony still feel that GSE’s and our elected officials need to put their business hats on together to ensure that every home being sold is for as much money as possible. They believe conducting responsible Short Sales is the best way to accomplish price stabilization. “The key with Short Sales is they transfer properties from homeowner to homeowner and not homeowner to bank to homeowner and that is why they will always sell for more than foreclosures,” said Anthony Lamacchia. John added, “I found it encouraging that we had three trips in three months to discuss our concerns and real life experiences concerning Short Sales with folks in DC”.