House Votes To Extend Homebuyer Tax Credit - 06/29/10 10:44 PM
All those wishing for Congress to extend the Homebuyer Tax Credit are now onelegislative body closer to getting their wish. In a vote today the House of Representatives approved moving the closing date for those under contract to September 30, 2010. The next hurdle will be having the Senate pass a bill that can immediately be presented for the President’s signature. But with most members willing to agree to a standalone extension, the prospects are pretty good.
 
Click HERE for the full article.
 
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Forget Modification And Move Ahead With Foreclosure - 06/28/10 08:39 AM
Since its inception, the Home Affordable Modification Program has been criticized as too little, too late; and the criticisms have come from all sides of the political spectrum. Put simply, HAMP doesn’t work, never could have, and should be abandoned. It’s time to forget modification and move ahead with foreclosure. Foreclosures will happen anyway; only the pain will be extended over a much longer period, like the current oil slick threatening the entire Gulf coast. Unless we can create a magical formula that will provide jobs and restore the assets of struggling homeowners, avoiding millions more foreclosures and a double dip … (16 comments)

HAMP Encourages Making A Graceful Exit - 06/26/10 12:46 PM
In a video entitled, Your Graceful Exit, the government is taking steps to encourage struggling homeowners to take action.  I suspect they are motivated by the sheer numbers of delinquent mortgages and are aware that the economy will not recover until the housing market is stabilized.
Unfortunately for homeowners, producing a video is far less effective than actually taking steps to "save" 7 to 9 million homes from foreclosure.  With HAMP considered a dismal failure by most, and with no relief on the horizon, struggling homeowners should just grab some popcorn and be content that their government has taken time … (2 comments)

Economic Recovery Or A Catastrophic Debt Crisis? - 06/25/10 09:28 PM
While news stories may point to an improving economy, a growing number of economists and business leaders are questioning whether we are entering an economic recovery or a catastrophic debt crisis. The President says it’s a recovery, and following the May jobs report, said, “This report is a sign that our economy is getting better by the day.” However, he ignored the fact that the improved jobs numbers could be attributed to the hiring of thousands of temporary Census workers.
 
The same politicians and bureaucrats telling us that the longest recession in decades is now over are the ones who … (18 comments)

Banks Pursuing Deficiency Judgments May Have Something To Fear - 06/16/10 10:21 PM
An article in the Washington Post describes how banks pursuing deficiency judgments may have something to fear. According to the article, some lenders are taking a more aggressive stance in dealing with distress sales that recoup significantly less than the original loan amount.
 
In the past, the cost/reward ratio caused few lenders to seek deficiency judgments, but the practice has become more widespread as lenders incur greater looses due to increasing numbers of foreclosures and short sales. According to the MBA, banks are not pursuing those who lack the ability to repay; and lenders participating in the government’s HAFA program … (53 comments)

Housing Starts Continue To Fall - 06/16/10 04:44 PM
Following the expiration of the Housing Tax Credit, single-family housing starts continue to fall, and are now 17.2 percent below the revised April number of 565,000. Seasonally adjusted starts for May were 468,000, the lowest level in the past year.
 
A decline in BUILDER CONFIDENCE seems to have been confirmed as single-family building permits fell by 9.9 percent below the revised April level of 486,000. The low number of building permits is a further indication that housing starts should remain low in the near term as builders and their lenders continue to exercise caution.

See the full report from … (7 comments)

Builder Confidence Declines - 06/15/10 11:12 AM
The latest report of builder confidence from the National Association of Home Builders/Wells Fargo Market Index shows that few builders see a near-term housing recovery.  And while politicians may have called a bottoming of the market, those in the business remain skeptical.   
Click HERE for the full report and a graph that tracks home builder confidence.
 
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Proposed Senate Bill Extends Deadline For Housing Tax Credit - 06/11/10 01:19 PM
A bill just introduced in the Senate would extend the deadline for the Housing Tax Credit by 90 days, according to an ARTICLE in The Washington Post. The bill, supported by the NAR, would grant those already under contract and extra three months to get their deal closed. Many lenders, suffering from an overload of mortgage applications, had indicated that some loans would not be ready to close by the original deadline of June 30.
 
The NAR has estimated that as many as 180,000 applicants under the original deadline would be unable to close. While the NAR and mortgage lenders … (25 comments)

The Latest Housing And Employment News From The Fed - 06/09/10 04:34 PM
The latest Fed “Beige Book” report is yet another indication that the early spring surge in home sales was only a temporary “blip” that has now come to an end. The report’s summary, which combines information from all Fed districts, seems to provide little hope for a sustained housing recovery.
 
More specifically, the report noted that, “Residential real estate activity improved since the last report. Most Districts noted an increase in home sales and construction prior to the April 30th deadline for the homebuyer tax credit, with contacts in many of these Districts also indicating a corresponding slowing in activity … (12 comments)

Private Pay Shrinks As Debt Increases - 06/08/10 06:40 PM
In a sign that the U.S. economy is still stalking an elusive recovery, private pay shrinks as debt increases. A recent article in USA TODAY reports that paychecks from private business experienced the largest drop in history. The report also shows that income from government programs such as, food stamps, Social Security, and unemployment insurance also reached record highs.
 
The above numbers would seem to account for the results of another REPORT showing that consumer debt increased by $1 billion in April. Most would assume that since pay decreased, credit card debt would increase as consumer attempt to cover for … (15 comments)

Trees Add Dollar Value To Real Estate - 06/07/10 01:54 PM
While home buyers are often attracted to homes with large trees, they may not realize that trees add dollar value to real estate. And the benefits are more than emotional. The folks at Davey Tree Experts have an interesting TOOL on their website that allows homeowners to calculate the dollar value of their trees, and the value is divided into several categories. And while the totals are generalized and somewhat subjective, the calculator provides an idea of the many values of trees.
 

Value is based upon:
 
Storm water management
Electrical consumption
Natural gas or other fuel consumption … (14 comments)

No Appreciation In Home Prices For Three To Five Years - 06/07/10 10:30 AM
With most economists now predicting a flat, jobless recovery, and with the continued increase in foreclosed properties, there is little hope that home prices may move up significantly for several years. While some pockets remain relatively strong, the overall housing picture is one of foreclosures, short- sales, and prices well below their peak. Click HERE for the details of why we may see little or no appreciation in home prices before 2015.
 
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The Precarious Position Of The American Economy - 06/04/10 05:27 PM
I’ve recently been planning a comprehensive blog post on unemployment and how it will impact the economy for years to come; and I had planned another on the explosive impact of the sovereign debt crisis. But the two issues are so inseparable that I will deal with both as well as other serious problems facing our nation.

I believe the U. S. economy to be in the most precarious position of my lifetime; and though I’d like to believe there is a pathway leading towards recovery, I fail to see it. I’m not optimistic about the recovery in the stock … (71 comments)

Trapped—How The Housing Crisis Impacts Employment - 06/03/10 06:02 PM
With approximately fifteen million homeowners owing more on their home than it is worth, employers are finding it more difficult to transfer or recruit from other areas of the country. Held captive by mortgages that are near or exceed their home’s value, large numbers of workers are turning down promotions and forgoing job offers that would require the sale of their home.
 
Companies unwilling to make a substantial contribution towards a “relocation package” may find themselves limited to local talent; but some have begun to adjust their policies to reflect the reality of a housing market going nowhere. An article … (12 comments)

No Improvement In Mortgage Purchase Applications - 06/02/10 10:07 AM
The Mortgage Bankers Association report on last week's activity indicates that there has been no improvement in mortgage applications. Click HERE for the report and a graph of the mortgage numbers over the past two decades.  Current mortgage activity now matches that of thirteen years ago.
 
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