In March 2009, Filene teamed with the Michigan Credit Union League and Consumer Researcher Bob Manning, to explore the problem of foreclosures in the state of Michigan. The resulting report highlighted 10 ideas to decrease the number of foreclosures. One of these ideas, Shared-Equity Agreements, struck a chord among league executives and they asked Filene and Manning to research this idea further.
The resulting report, “Using Shared-Equity Agreements to Reduce Foreclosures: Policy and Analysis,” aims to address the needs of under water consumers by creating a market incentive that shares the risk and financial gain between the mortgage holder and the consumer arising from a rapidly established and stabilized housing price floor.
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This could really help those people facing foreclosure. Real estate investing is a very hot ticket right now for those who can afford to, since prices are at an all time low. One way that a lot of people are making entre is with bulk REO, or Real Estate Owned property sales. Bulk REO sales are multiple properties, sold by banks or real estate finance companies at deep discounts, to divest themselves of foreclosure property they don’t want to maintain. Since they buy at a deep discount, that leaves great potential for profit – but for those who can afford it, as an REO property will cost more than a cash advance. I hope that this would continue helping others who need their guidance.
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