Another Obama Administration Housing Program
Obama housing foreclosure program
Today the Obama administration announced yet another housing program. Today’s plan proposes to reduce the amount some troubled borrowers owe on their home loans.
The $14 billion for the program will come from the administration’s existing $75 billion foreclosure-prevention program. Now under-water homeowners will get huge principal reductions and new loans backed by the Federal Housing Administration.
The plan will also require that mortgage companies participate in the administration’s existing foreclosure prevention program with consideration to slashing the amount borrowers owe. The lenders will get incentive payments if they do so.
Housing Market Bottom Illusion
housing market outlook
Remove all of the shenanigans going on to try an prop up the illusion housing has stabilized and we would fall off a cliff. To recap what has gotten us to “stabilization”.
1. 1.25 trillion in Fed purchases of MBS
2. Government paying people 6k to 8k to buy a home
3. Suspension of FASB 157 allowing banks to cook their books and hold a years worth of foreclosed homes off the market.
New Home Sales Down for February
The February new home sales were expected to be up by 1.9%. But, the just released numbers were actually down 2.2%!
This is not a good sign for the housing market.
Home Foreclosure Reality
home foreclosures
ForeclosureRadar says it now takes an average of 229 days for a bank to foreclose on a home in California after sending a notice of default, up from 146 days in August 2008.
RealtyTrac notes that the number of loans in which the borrower hasn’t made a payment in 90 days or more but is not in foreclosure is at 5.1% nationally, a record high. Read more 
Homeowners Best Credit Idea
home equidy line of credit
If you are San Diego homeowner who still has some decent equity, if you need cash, a home equity line of credit (HELOC) may be your best bet! The graph above gives you an idea of the current approximate interest rates charged on five popular loans. Like any loan, don’t borrow more that you really need.
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San Diego Ghost Equity – Homeowners Reality
San Diego homes for sale
San Diego real estate: Why are many homeowners not selling? In my opinion, it’s because of ‘ghost equity!’ In 2005 their home may have sold for $700,000, but today the real market value could be $500,000. This lost $200,000 ‘ghost equity’ is something a number of homeowners cannot accept.
The San Diego homeowners do not want to face reality and accept a huge hit to their perceived equity. Even if they have positive equity in today’s market place, mentally they are resigned to staying put until their ‘ghost equity’ re-appears!
What some of the delusional homeowners may not realize is that unless their mind-set changes,and they give up the ghost, they may be living in their current home for many more years than originally expected.