Thats great news because a stablizing real estate market is what many believe we need to move the United States out of this recession.

Another positive sign with in the real estate market is the applications for new mortgages is up also up 7%.  As credit markets continue to loosen and the expantion of home buyers  tax credit it’s no surprise that applications are up.

But all in all great news for the real estate market. It seems we might be seeing the light at the end of the tunnel in regards to the recession. Although with stock markets still shaky and record high unemployment rates we are not out of the woods yet.

The Bakersfield California article was recently updated but did not reflect any of the information about the expansion of the tax credit.

The expanded tax credit it would go beyond the original date of March 1, 2010. The home buyer tax credit also would be available to more than just new home buyers.. it would be available to all home buyers and there may even be a tax credit for those who refinance.

According to USA Today..

Lawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. Read the rest of the USA Today Article

Many folks think reverse mortgages are junk loans pushed on seniors by bottom feeding mortgage lenders. And many cases that may be. That’s why you need to be educated on reverse mortgages and be sure to work with a trustworthy lender.

As started in the article, some misconceptions on what reverse mortgages are and how they work…

“I will lose my home to the bank.” “If I die my children will not get my home.” “At some point I will outlive the mortgage and have to leave my home.” Thankfully, none of these statements are true. — TONYA HOWZE, Contributing writer, Bakersfield Californian… Read the rest of Reverse mortgages an option for some

Reverse mortgages might really be a good option for some home owners. I recommend you check the aforementioned  article if you are considering a reverse mortgage.

For a little different explanation of reverse mortgages as well as other mortgage types.. visit our Real Estate FAQ article - Common Mortgages in Tehachapi CA.

I thought the tips in the article were right on point and is a must read for all, home buyers, home sellers and real estate agents alike.  Being well educated and thoroughly prepared with all necessary paper work  are only the first steps in avoiding issues or hangups with home sale closings.

Like a train, a transaction can get derailed at any point on the track. A closing can be hit by a clouded title, a home not appraising for value, a rapid change in interest rates, an undisclosed credit or income issue, or one of countless other unanticipated issues.
- Dirk Zeller, Realty Times

Read the rest of Avoid Closing Derailment…

How long will it take? The loan modification process typically takes 30 to 90 days, depending mostly on your lender and your ability to efficiently work through the process with your attorney or other loan modification representative.

Back in October of 2007 we called our lender to inquire about loan modification as our interest rate sky rocketed to 9.4%. We held on doing the refinance as we were trying to sell the property. We missed our window and wound up with a mortgage payment that went from $1400 to almost $2200. 

Our loan was with Litton Loans and they stated to us the process would take 45 - 60 days. We turn in all the paperwork needed and we don’t hear back from them for almost a month.. we had top call them. It took us a week to reach someone.  The story goes on and gets worse but I’ll spare the details. In the end our home loan modification process took over 120 days. Something we started in October didn’t finish until February 2008.

Beware that if you are working with your lender on a loan modification, you have to stay on top of them almost every day. And if your lender is Litton.. good lock and God bless.  For some helpful tips on  loan modification check out this article that we posted a while back, How to Restructure or Modify an Existing Loan.

According to an article in Realty Times… “Market Conditions”
by Realty Times Staff

“The National Association of Home Builders is reporting a 4.7 percent gain in new-home sales in February, which comes as welcome news.”

Many speculate that in order for economic recovery to happen, the real estate market first needs to stabilize. So a 4.7% gain is great news… and just in time for spring when the housing market tends to start picking up after a long winter.

The Bush administration sketched out a multi-faceted effort on Friday to confront the worst U.S. financial crisis in decades, outlining a program that could cost taxpayers hundreds of billions of dollars to buy up bad mortgages and other toxic debt. Relief washed over Wall Street with a surge of buying.

… Paulson gave few details but said he would work through the weekend with leaders of Congress from both parties to flesh out the program, the biggest proposed government intervention in financial markets since the Great Depression. Members of the Senate Banking Committee said they had yet to receive details of the proposal, but were ready to move quickly when they do. JEANNINE AVERSA and JULIE HIRSCHFELD DAVIS

Senator McCain Doesn’t Agree…

The Republican presidential hopeful said the Fed should get back to “its core business of responsibly managing our money supply and inflation”…

McCain said simply that leaders should put aside partisan differences and “any action should be designed to keep people in their homes and safeguard the life savings of all Americans.” “McCain says Fed should stop government bailouts” By BETH FOUHY, Associated Press Writer.

So what do you think.. does it make sense to bailout the financial instutions or hardworking / tax-paying American’s?

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WASHINGTON - The Federal Reserve has adopted rules to give home buyers more protection from the types of shady lending practices that have contributed to the housing crisis and propelled foreclosures to record highs.

Chairman Ben Bernanke and his central bank colleagues approved a plan Monday that would crack down on dubious lending practices that have hurt many of the riskiest “subprime” borrowers — people with tarnished credit histories or low incomes.

As I read through the article all I could do is think.. these rules aren’t stiff enough and the article concurs…

Consumer groups initially complained that the new rules are not strong enough. Lenders worry they are too tough, could limit mortgage options for people and make it harder for some to obtain financing.

What’s interesting is that article mentions that these rules won’t get tested for a while because of the current state of the market.. fewer buyers and fewer shady lenders who couldn’t hang on through this housing crisis. With that said, my question is why are they messing with these rules which will benefit the future of the real estate market?

The Federal Reserve needs to be working with Congress on fixing the current state of housing market crash by helping those who got preyed upon by these shady lenders and are now in or are facing Foreclosure. Before the July 4th summer break Congress had a Federal housing rescue bill moving through the Senate but hit a stalemate. Since then there has been more talk about this rescue bill.

What do you think.. are these new home buyer protection rules with the time.. do you think they’ll work?

The article pertains to a bipartisan forclosure rescue bill that has lots of support and was moving well until Sen. John Ensign, R-Nev. attempted to add a $6 billion package of tax breaks for renewable energy producers.

The article also mentioned other reason for the delay…

The stalemate contributed to a pre-vacation Senate traffic jam of high-profile legislation awaiting completion, including the broad housing  package, a terrorist surveillance bill, and bills to fund the Iraq war and avert Medicare cuts.

Senate Majority Leader Harry Reid, D-Nev., said he was determined to complete the housing measure - which also includes long-awaited overhauls of the Federal Housing Administration and Fannie Mae and Freddie Mac, the government-sponsored mortgage giants - but that it will have to wait until next month, after lawmakers return for a weeklong July 4th break.

Thoughts on the Matter

Honestly, what was Sen John Ensign, R-Nev thinking? Environmental issues and looking for ways to increase / promote renewable and sustainable energy (see our Green Blog for more on  Green Energy) are very important but this item has no business being piggy-backed with a foreclosure rescue bill.

It’s kind of ridiculous. Our politicians need to keep focus on the real issues at hand and think about whats best for the people right now, before they push their own personal agendas. Now because of this hold-up those folks who are close to losing their homes in foreclosure, are sweating it out and left waiting until talks resume in a week after the July 4^th holiday.