Blue Asset Management Finding Difficulty Closing Resales Due to Loan Restrictions

Jan. 16, 2011 - PRLog -- Charles Blumenkehl, CEO of Blumenkehl Companies and managing partner of Blue Asset Management LLC, said that while interest in company properties currently for sale have increased since the beginning of 2011, loan restrictions placed on potential borrowers and properties has made the effort to buy and sell a home more cumbersome on the consumer and are slowing the real estate recovery.

According to Blumenkehl, "Prices and rates are more affordable than they have been in many years. However, the restraints being placed on the lending process, including the amount of reserves required by the lenders from borrowers, increased down payments, seasoning requirements, and multiple appraisals reviews that take long periods of time are making it harder for buyers with the best of credit to close title on their property timely." Blumenkehl continued, "I believe the system has to ease up so credit-worthy, gainfully employed home buyers can take advantage of the tremendous opportunities that abound today."

Blumenkehl also believes the government should help by providing a stimulus to first time buyers. Said Blumenkehl, "Obviously there is a tax cost in any incentive the government might offer. But when you think of the income that flows from the transaction, even a small stimulus offering that could spur increased activity will generate more tax dollars in the form of transfer tax and state and federal income tax than the incentives will cost, and will help employment by providing more opportunity to ancillary service providers who provide services and goods to the homeowners post sale." Blumenkehl points to the increase generated in sales until the Obama administration ended the new buyer stimulus package in mid 2010, at which time real estate unit sales fell over 20% across the country.

For more information about Charles Blumenkehl, Blue Asset Management LLC or Blumenkehl Companies, log onto the company website at www.blueassetmanagementllc.com or call the company directly at 973 835-1400.

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Buyer of performing and non performing residential and commercial first mortgages, distressed real estate and investment properties in New Jersey