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As an owner of a property, one of the worst situations a landlord can face is a tenant who is failing to pay rent on time. The situation can build up quite rapidly. Learn what to do to solve things rapidly.

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Not all tenants are created equal. There comes a time when a landlord may need to protect their investment by evicting a tenant from their property. This article covers the correct ways to serve an eviction notice quickly and easily.

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Home · News · Federal Government Set To Reduce Cap On Housing Loans

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Federal Government Set To Reduce Cap On Housing Loans

Until September 31, 2011, borrowers will be able to get mortgages backed by the government totaling up to $729,750. Although most houses in the US fall in the $200,000 range, high priced markets such as New York City and Los Angeles depend on the sale of pricey homes in order to fund their budgets. Due to the fact that Congress is currently working to lower the deficit, lawmakers believe that the federal housing loan cap will help to balance the federal budget.

Many lenders have already amended their applications to include the new rules set to take affect in early October. The main reason that most banks prefer to purchase federally backed loans is because they have the benefit of receiving payments even if the mortgage holders default. With the federal government now owning a considerable portion of Freddie Mac and Fannie Mae, lawmakers believe that they will eventually be able to recoup their costs. However, the poor state of the housing market has prompted Congress to stop back from the situation and take a closer look at the long-term viability of continuing to pump money into the mortgage sector.

Real estate professionals in high priced areas are understandably dismayed by the planned changes. They will make smaller commissions and it will be more difficult for them to find suitable homes for home shoppers that qualify for larger mortgages. In due time, the government will likely remove the federal housing loan caps, but until then applicants will have to make due with the amounts that they have been guaranteed.

09.07.2011. 13:51


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