Foreclosure Prevention and Foreclosure Relief

February has been a busy month for the national housing market. In a nut shell:
1. February 1st, President Obama announced details of a plan to help homeowners refinance their mortgages to the tune of somewhere between $5 billion & $10 billion. Also included in this plan is a pilot program to transition bank owned properties into rental housing. What???? The government as a landlord? And what happened to the HARP money, the HAFA money and the HAMP money? We have not seen any of these programs benefit borrowers, buyers nor sellers down here in the trenches.
House Speaker John Boehner (R., Ohio) question why this program would work when others have failed. He asked reporters:
“One more time? One more time? How many times have we done this? I don’t know why anyone would think that this is next idea is going to work.”
2. February 9th, President Obama announced that a $26 billion foreclosure settlement with five of the largest home lenders. California is to receive $12 billion in principal write-downs, including short sales over the next 3 years.
But don’t hold your breath just yet, because the rules only apply to the big five banks and don’t apply to Fannie Mae, Freddie Mac or Ginnie Mae loans.
Anyone interested in reading the full article from CNN, just click on this link: CNN Money Article . With all this said the Short Sale and full Foreclosures are here to stay for a while. It does amount to about 80% of the current sales, even here in Kingsburg.
As you can see by the CMA to the right of this post, the January inventory keeps dropping and now sits at 28 Active listings. To put that in perspective, last January we had 45 of Active listings. We had 12 homes close escrow this past month, which is a really good number for January. DOM (days on the market) and Price per square foot continue to drop, the last one due to the foreclosures.
Please feel free to call us if you have any questions regarding the real estate market or lending. We are here to help!

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