This is from my interview today on News Radio 101.1 FM KXL
Today we talk about affordability and the new foreclosure settlement you’ve been hearing about with our real estate expert Nick Krautter
Q. What’s the new story with affordability?
A. The affordability of homes is at an all time high which means that most families earning an average income can afford more than an average home.
Q. Do you think this trend is happening here in Portland?
A. I do see it right here at home. Many of our clients who have been renting are now able to own for less than the cost of renting. Also, investors are seeing greater return on investment as well with rentals.
Q. Let’s talk about the 26 Billion dollar settlement the banks have reached over foreclosure mishandling.
A. Many people who have lost their homes to foreclosure could receive up to $2,000 from the settlement. Most of money will be spent to reduce the principal amounts of loans of borrowers. Fannie and Freddie owned and backed loans are not part of the deal and that’s 50% of the loans in the U.S.