NEW YORK, NY — (Marketwire) — 07/16/12 — Ever since the housing bubble burst, foreclosures, short sales, and REO properties have become all-too-familiar parts of the American landscape. For many consumers, the sheer volume of foreclosed or otherwise distressed properties on the market is a sign of just how tough times are, and how badly the real estate industry needs to recover. A piece of California legislation would effectively slow or even stop the foreclosure process on many homes, something that might initially seem like an effective way to stabilize the market. According to many real estate authorities, including Absolute Capital Homes founder Jonathan Dieguez, the proposed law would actually do much more harm than good, both to the market in general and to consumers, in particular.
The proposed California law reflects the fact that the state has been hit especially hard by the difficult economy, and by the struggling housing market. The bill, if made a law, would obstruct the foreclosure process in numerous ways, either slowing or, in some cases, altogether preventing properties from reaching the point of foreclosure. Though the bill is said to be beneficial to the state-s struggling economy, there are some, such as Jonathan Dieguez, who say that it would ultimately prove counterproductive.
Jonathan Dieguez is the founder of the privately-owned real estate investment firm, . He has responded to the new California proposal with a press statement, in which he notes that the only way to revitalize the real estate market is to free it from the numerous distressed properties that currently clutter it. Slowing or stopping foreclosures would only have the opposite effect, Dieguez says.
The Absolute Capital Homes press statement goes on to note that while the real estate market may look bad, it is ultimately the consumer that is paying the price. “Consumers are not only concerned about when the housing market will bottom, but also the future of their employment, 401k-s, pensions, and so forth,” observes Dieguez.
“When will this real estate market bottom and home prices stabilize?” continues the Absolute Capital Homes statement. “I believe we-ll hit a bottom when the unemployment rate drops to under 8 percent, the Federal Reserve begins to raise interest rates, we see a sizeable increase in consumer confidence and personal income, and a dramatic decrease in non-performing assets held by financial institutions (toxic or shadow inventory).”
invests in distressed properties across the East Coast, refurbishing them and reselling them. The company also offers an array of services to consumers, especially first-time homeowners. These services include credit rehabilitation, rent-to-own programs, and more.
ABOUT:
Absolute Capital Homes is a privately-owned, fully integrated real estate investment firm, located in New York. The company also maintains offices across the East Coast, particularly in the New York Metropolitan area. The company-s chief aim is to generate attractive returns through investment in residential and commercial real estate, capitalizing on the rising inventory of distressed properties held by private and public financial institutions. Absolute Capital Homes purchases promising REO and pre-foreclosed properties that require rehabilitation, then partners with local contractors to perform essential repairs, and experienced realtors to list and sell them in a timely fashion.