The Washington times., 1937-05-22
BuyersCIoimed
In Rush For
Properties
Decrease Of Building,
Loan Holdings Is
One Result

CHICAGO, May 22.-ProgresS
toward home ownership is hasten
ing its pace not only by the revival
of BODYBUILDING but also by the
increasing volume of transfers
through which homes are be-
coming once again the property Of
a family rather than a mortgage
institution.
This development was cited to.
day by Harold T. Donaldson, presi-
dent of the United States Building
and Loan League, who reported
that during the first quarter Of
this year savings, building and
loan associations found new
owners for some 1880 homes
which had been decided to the in
situations in bad years.
It was estimated by Donaldson,
from the balance sheets Of repre-
sentative associations at the begin.
ming of the year and at the end Of
March, that real estate assets de-
creased by SOS, 100000, SO per
CC0G A4Op III 1Ano 4UCAA'
Resources Increase
Meanwhile, the total resources
of the institutions apparently in
creased about per cent during
the quarter, Donaldson said. He
explained:
Compared with the end of
the first quarter a year ago, the
real estate holdings Of the as ,
sociatiOnS had been reduced
S145,OOO,OOO by the re-entrancel
of the American family into the
hOme-OwnerShip market.
"This figure shows that the
great step ahead in the trans
fers of homes from the aSSOcia-
lions to individuals came in the
last three months, which ae-
counted for nearly half Of the
activity in the 12-mOnth period
being considered.
"When the buyer has suf-
ficient down-payment to warrant
an associations giving him title
to the property and taking p
mortgage on it, he becomes .
regular borrower from the saw
ings and loan institution.
$4,000 BORROW
"He begins making monthly
payments on the principal Of
the loan just like the other 2S,-
900 who borrowed from the saw
ings and loan associations to
build houses during January,
February and March, and sew
eral thousand others who in the
same period bought already
built homes from somebody else
with the financing aid Of the
associations.
''Where the buyer did not
have the dOwn-payment re-
quired he bought the house on
contract from the association.
The asset item, real estate sold
on contract, increased 40 per
cent during the first three
months Of 1887, showing the
large part which this type Of
buying has played in advanc-
ing home ownership"
It was explained that when
monthly payments on the con-
tracts have decreased the amounts
owed to the point where the asso-
cations policy will permit the
family to take title to the prop
erty and give a mortgage, these
agents will become mortgage loans
on the books of the associations.
Better Times Help
Two or three years is the time
usually consumed in reaching this
point. Donaldson explained:
"The present buyers have q
much likelier prospect Of paying
off the debt and owning the
home free than the former build
ers or buyers Of the same prop
erty in the later twentieS had.
This is because they are buying
the property at the beginning
Of the rise in the cycle whereas
the former owners were going
into debt when the prosperity
cycle was on the wane, although
unfortunately few observers real
lied it,"
In some areas the properties are
being transferred so rapidly from
the associations to new owners
that the policy on renting the
= y l. l.