Home Prices and PPIP and Short Sale Lessons

Broker Wants Chips To Fall Where They May

July 8, 2009

Though a bit of a rambling article, it points out that recovery could be easier without all the market tampering. If loans doomed to fail go ahead and fail and banks are encouraged to speed up the turnover process, a new group of homeowners might just be poised to stabilize the crisis.

http://seekingalpha.com/article/147586-here-s-a-statistic-i-dare-you-to-challenge

Home Prices Expected To Be Lower In 2011

July 7, 2009

The PMI Risk Index projects that very few of the nation’s metropolitan areas will see an increase in home prices in the next two years. The already hard-hit states of Florida, California and Nevada are at greatest risk if current market conditions play out as expected.

http://online.wsj.com/article/BT-CO-20090707-708983.html

Criticism of Toxic Asset Program

July 7, 2009

The Public-Private Investment Program (PPIP) has some analysts doubting its potential because it stops short of helping investment firms obtain individual mortgages, which leaves trillions of dollars off the table. Also, the subsidies should bring the banks 5%-10% closer to breaking even, though a difference still exists between what the banks want and what investors will pay for the damaged assets.

http://www3.signonsandiego.com/stories/2009/jul/07/us-toxic-asset-plan-treasury-070709/?business

Blight Fight

July 7, 2009

Since 2007, Chula Vista, CA has been a model city for requiring lenders to maintain foreclosed homes by levying fines at record rates. The city’s code enforcement moves the burden from homeowner to lender when the home becomes unoccupied instead of when the bank takes formal possession. Critics say this measure may be slowing real estate recovery by scaring off banks.

http://www3.signonsandiego.com/stories/2009/jul/07/city-under-gun-ease-blight-fight/?metro&zIndex=127828

Short Sale Q&A

July 7, 2009

For anyone who wants to learn the basics on short sales, this article is very helpful. Short sales have increased as an alternative to foreclosures, and (though not easy) it is a road that can benefit both homeowner and lender.

http://www.nj.com/business/index.ssf/2009/07/real_estate_attorney_sizes_up.html