AARP SAYS SOME BORROWERS MAY BE PROTECTED FROM FORECLOSURE

Can your home be foreclosed if you did not qualify for the loan in the first place??  The State of Massachusetts ruled NO.

Loans that sounded too good to be true … No document, no income qualification, easy approval, and a low low “teaser” interest rate.  Many of the homeowners couldn’t afford the loans they were offered. When the  adjustable rates soared after two or three years. the threat of foreclosure skyrocketed. 

But the State of Massachusetts Attorney General said “no way”. After winning a series of lower court decisions the State Supreme Court found that many of  these loans packed  such a combination of unfair and deceptive terms that homeowners could be protected from foreclosure because the actions of the lender involved in the suit was unfair and illegal.

What does this mean to you?  If you are having trouble  repaying an adjustable-rate mortgage, contact the attorney general’s office in your state.  Several other states already have lawsuits pending against subprime lenders.

HOUSING TRENDS IN NEVADA COUNTY MARKET

HAVE WE HIT BOTTOM????  Asks California Association of Realtors

Every home buyer and home seller has the same question:  Has California real estate markets hit bottom?? If you are looking at the number of annual home sales the answer is “yes” and the answer is “not yet” if you are looking at median home prices, according to the California Association of REALTORS 2009 economic forecast.

California has recovered from two significant downturns since 1970.  Between 1978 and 1982, double-digit interest rates put mortgages out of reach for most home buyers creating a 61% plunge is sales prices.  The second, between 1988-1994, was fueled by a national recession in 1990-91 with subsequent job losses in defense, aerospace, and financial sectors.

Current market conditions began to surface in the last part of 2006, beginning of 2007 with the meltdown of the so called sub-prime mortgage market. This was followed later in 2007 by the credit crunch, which grew into a full scale financial freeze by fall of 2008.  Each of these damaged the housing market, with the last two undoubtedly weakening the economy as a whole. Only in recent months — three years into the current housing downturn — has the market faced the new challenge in the form of an economic recession.  A recession will very likely delay a turnaround in the housing market.  Even so, statewide trends will vary and what counts is the trend in the local market.  A REALTOR will look at present inventory vs. homes sold each month to determine duration of inventory.  Inventory duration of 8 months or longer indicates a longer road to a turnaround.

Ultimately it is all about timing.  Timing matters a lot less if you are buying a home you will be living in for 6-10 years.  Buyers who adopt a long term strategy may find the timing is now to buy when they find a home that meets their needs and is affordable.  That home may not be available six months from now.  With inventory plentiful and interest rates down, buyer indicators are strong and should remain so for some months.

We are near bottom and can see bottom, with more stable prices on the horizon by the second half of 2009 as the statewide median price continues to be influenced by the statewide foreclosure and short sale market.