Homeowners in California to Receive Further Assistance from Obama

In again another effort to help stem the foreclosure crisis that has hit California and homeowners all across America, the Obama Administration announced two new foreclosure prevention programs.

Below is a summary of each...

Hardest Hit Fund Program:

• Available to states that have unemployment rate at or above the national average over the past 12 months
• Provide temporary assistance to eligible homeowners to assist them in paying their mortgage
• Homeowner has to be seeking re-employment, additional employment or undertaking job training
• $2 billion allocated to program

HUD Emergency Homeowners Loan Program:

• Available to homeowners in hard hit local areas that are still being determined
• Offer homeowners deferred payment bridge loan (no interest) for up to $50,000 to assist with payments on mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.
• Homeowner must be able to show reasonable likelihood of being able to resume payments within 2 years
• Only available for homeowners on principle residence
• Demonstrate a good payment record prior to the event that produced the reduction in income

Are these programs helping Americans? Or are we prolonging the inevitable? We have seen the effectiveness, or lack of it, with the Government's attempt to save the American homeowner with the "Mortgage Refinance".

I believe the quickest road to recovery is to let the process work itself out naturally... as each bad loan (homeowner who could not afford their mortgage payments) turns into a good loan (homeowner that can afford their mortgage payment and have the income to prove it!)

To read the more Click Here.

Foreclosure rate drops 41%... Bank owned inventory up 19% in the Coachella Valley

So what's the real story, is the market getting better or is the market getting worse? Neither. Reading between the lines it is evident that the foreclosure rate is dipping (of course still very high) which is a good sign for the real estate market and a good sign for people and families across the Coachella Valley... but this by no means an indication we are out of the woods yet, just on the right track.

Banks still have pent up inventory that will continue to SLOWLY but SURELY be released to the market. In the entry level to mid level market (under $300k), the Palm Desert area currently has enough demand to absorb this increased inventory. Today, we continue to see multiple offers on WELL PRICED properties and buyers are still having a hard time getting an offer accepted on a home on their first, second or even their third offer... continually being beat out by competition (often times investor's with CASH). Because of this, the increase in inventory to the Coachella Valley would be welcomed by home buyers and I feel would have little to no effect on pricing.

So what does this mean?... in the entry to mid level market we are at a point where the market is neither getting better nor worse, we are just where we are at, and how long we will be here... who knows. Now the high end of the market, thats another story...

Check out the whole story in the The Desert Sun.