The depressed housing market is still being felt all over the US.  Many unfortunate homeowners who bought their homes from 2005-2007 did nothing wrong, but still find themselves with their equity/down payment wiped out and owing more money than they’ll be able to get by selling the home.

Others have suffered  harrowing personal circumstances that resulted in losing their home as it was returned to the lender.

Some try to do a short sale on their house, where they sell their house on the market to a willing buyer and attempt to negotiate with the lender(s) to accept less than they’re owed.

AP writer Derek Kravitz wrote an article that appeared in the San Francisco Chronicle on August 25 that offered the stark percentages in our current market.  Keep in mind that he includes short sales in with foreclosures:

“Foreclosures made up roughly one-third of all home sales this spring.    While that’s a smaller share of sales from the previous quarter, it’s six times the percentage of foreclosures in a healthy housing market.

Foreclosure sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31 percent of the market in the April-June quarter, foreclosure listing firm RealtyTrac Inc. said Thursday.

The share of the market would likely have been larger this spring if not for a state and federal investigation into faulty paperwork by banks and servicers.  The probe has led many banks to delay foreclosure sales.  Once that is complete, foreclosures will likely surge later this year.

As a slice of all home purchases, foreclosure sales peaked two years ago at 37.4 percent.  In the second quarter, they declined from 36 percent in the January-March period.

In all, 265,087 homes in some stage of foreclosure or owned by banks were sold in the second quarter, down 11 percent from the same period a year ago.  Sales of all other types of homes also declined, according to RealtyTrac’s figures, which differ from other home-sales estimates.

Bank-owned homes, which are sold after being repossessed, accounted for nearly 19 percent of all sales.   That’s unchanged from the previous quarter.

Distressed properties, often in need of repair, typically sell at big discounts and weaken prices for neighboring homes.

A bank-owned home this spring sold for 40 less than the average price of other homes, according to RealtyTrac.   That’s up from 36 percent in the previous quarter and 34 percent from the same quarter one year ago.

Sales of homes in the foreclosure process or short sales went for 21 percent less than the average home sold, the firm said.   That’s up from an average of 17 percent in the first quarter and 14 percent in the second quarter of 2010.   A short sale is when the lender(s) agree to accept less than what is owed on the mortgage.

The average sales price of a foreclosure property was $164,217, down less than 1 percent from the January-March quarter and nearly 5 percent from the April-June quarter in 2010, the firm said.

Nevada led all states with foreclosure sales, accounting for 65 percent of all home sales, RealtyTrac said.

In Arizona, foreclosure sales represented 57 percent of all home sales for the quarter, up 16 percent from a year ago.  In California, foreclosure sales accounted for 51 percent of all home sales in the second quarter, virtually unchanged from last year.

Several other states had foreclosure sales that accounted for at least one third of all home sales in the first quarter:  Michigan, Colorado, Florida, Illinois and Oregon.”

Still, there are indicators on which you can rely to determine whether your home’s value will rise.

KEEP THIS IN MIND:

• The unemployment rate in an area can help you determine if your home’s value is likely to rise. As the unemployment rate rises, fewer individuals are able to purchase homes, decreasing the demand, and driving down prices. To find your city’s unemployment rate and whether it’s rising or falling,  you can visit the Bureau of Labor Statistics’ Web site at;

http://www.bls.gov/lau

•  On average, foreclosed homes sell for 30 percent less than similar homes in the same area, however, that figure varies by housing market, according to an executive at RealtyTrac.com, which tracks foreclosures.  As foreclosures increase, the average price of homes in the neighborhood decreases.  To view  properties in various stages of foreclosure, including foreclosure filings, auctions, and bank repossessions, visit:

http://www.realtrytrac.com

•  Your  neighborhood’s  supply of homes for sale is also a good indicator. A supply of five to six months is considered “normal.” For the most extensive inventory level comparisons, you should contact a Realtor who specializes in your local neighborhood to provide a detailed analysis

• Following the list-to-sale-price ratios of your neighborhood can help determine the direction of home prices.   If the price difference is shrinking, that suggests the real estate market is improving.   Some real estate Web sites offer this information, or, once again, you can contact a local Realtor who can provide the average list-to-sales price ratio and a historical comparison for your neighborhood.

To read the full story, please click here:
http://www.smartmoney.com/personal-finance/real-estate/6-signs-your-home-will-increase-in-value/

When lenders do not receive payments, the first action taken by the lender is to report the missed payment to the credit bureaus by the first day of the next month. Sometimes this can happen in as little as two weeks from the due date, depending on when the payment is due. Generally, this action will leave a negative mark on a credit report and decrease the homeowner’s credit score by as much as 200 points.

Because of the negative mark on the homeowner’s credit report, within the next 30 days, homeowners can expect their other creditors to take note of the late payment and to take action. Credit card issuers may raise interest rates, lower credit limits, or close credit card accounts. The borrower’s auto insurance, student loans, and other forms of credit also may change, as these are tied to the borrower’s credit score as well.

If the homeowner does not pay for 90 days, the lender likely will start calling, trying to persuade the homeowner to enter into a loan modification. If a loan modification cannot be agreed upon between the homeowner and the lender, and the homeowner continues missing payments, the homeowner likely will be served with a foreclosure notice.

After the foreclosure notice is received, the lender asks a court to issue a
judgment against the homeowner, and a county sale is arranged.  Homeowners at risk of defaulting on their mortgages, or those who already are behind, should contact their lender immediately to work out a repayment plan and/or loan modification.

To read the full story, please click here:

http://www.modbee.com/business/story/913445.html

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.  First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500.  Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years.  The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.  The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers.  According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was “the most important” or a “very important” factor in their decision to buy a home.

To read stories about the extension and expansion of this valuable home-buying incentive, please visit the following:

Aid for jobless, homebuyers clears Congress
To read the full story, please click here.

Congress Extends Jobless Benefits, Home-Buyer Credit
To read the full story, please click here.

Congress passes bill extending unemployment insurance, home buyer tax credit
To read the full story, please click here.

Piedmont: Called “the City of Millionaires” in the Roaring 20s because it contained more millionaires per square mile than any city in the U.S., Piedmont is still the upscale, desirable place to live in the near East Bay. With its architecturally classic homes, and the lovely tree-lined streets, Piedmont has the feel of a Midwestern town with the sophistication of the big city. Its stellar school system only adds to its allure.

Berkeley: Home of the University of California, Berkeley also has wonderful neighborhoods and attractions. From the winding streets of Thousand Oaks to the large, stately homes of the Claremont, from the spectacular views in the Berkeley hills to the charm of the Elmwood, Berkeley has it all. Do you want to ride a steam train? Try Tilden Park. Do you want to eat the freshest, most creatively prepared food anywhere? Reserve a table at Chez Panisse, birthplace of California cuisine. Try 4th Street for hip shopping, then splurge with a spa package from the Claremont Hotel. Berkeley’s charms will have you hooked.

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