Homeowners Check List for 2011

homeowner predictions for 2011
homeowner predictions for 2011

Homeowners have different needs than buyers and sellers: Mainly, they already own homes, and therefore are less affected by day-to-day market issues. Still, 2011 promises to bring some new twists to this large group of consumers. Tara-Nicholle Nelson of our sister site, WalletPop.com, gives a glimpse at some of the housing issues homeowners are likely to face.

Often, the media looks at real estateand mortgage in terms of market dynamics and how they impact buyers and sellers. The fact is, homeowners who have no immediate plans to sell actually outnumber those other consumer segments.

Here are some predictions for what the market will hold for homeowners in 2011:

1. Principal-Reducing Loan Modifications Remain Elusive

Principal reductions--loan mods that forgive some of the outstanding loan balance that a homeowner owes on a mortgage--have long been the Holy Grail of the loan modification world. Upside-down homeowners literally stand with noses pressed against the bakery window, salivating at the anecdote of a friend's cousin who got his loan balance reduced. Or the news reports that come up every six months or so, saying that the Obama administration/the banks/Congress/Fannie Mae/Freddie Mac/FHA is (again) urging/considering/hearing testimony in favor of widespread principal reduction programs.