Housing: Finally Some Positive News

Housing is getting some good news as the markets keep fighting on despite the front running economists saying its all but dead.

First off, any good news needs a narrative and it starts with Donald Trumps record sale of his Florida Mansion.

Meanwhile U.S. Housing starts unexpectedly surged 9.1% in June, the most in more than two years. Barron's Magazine is asking if the market is ready for the "giddy days again", stating a recovery may well be on its way, while affordability of many real estate markets are being sung across the Country.

Of course, as always, just like when markets started tanking… trends are very much market by market. We believe things are turning around. We're seeing an uptick in people wanting to buy homes again.

What do you think? We'd love to get your feedback. Just give us your comment by clicking the comment link below and sounding off. Your email address will never be published on our site here.

Sale / Rent Back Schemes: Not Always What They Seem

As the slumping economy and ensuing credit crunch takes hold, and more and more people are struggling with their mortgage repayments, a number of companies are springing-up who offer a "sell / rentback" scheme. This type of proposal involves the homeowner having their house bought from them, for a percentage of its market value, then offered the chance to be a tenant, negating the need to have to vacate the premises.

For some, it seems like the perfect opportunity to get rid of a mortgage problem and not have to deal with the hassle of moving. However there are some critics who state that the schemes may not be all they appear to be and might actually be more trouble than they’re worth.

Some homeowners have reported receiving only half the market value of their house, with others stating the rental agreement was not upheld. There is also the risk that the company to whom the house is sold may not be able to maintain the mortgage repayments, and you, as former owner turned tenant, will ultimately face eviction anyway.

Although the general idea behind a sale and rent back is sound, the way it is handled and put in place is not, and homeowners aren’t as protected as they might think they are. As soon as they have sold their house to one of these schemes, then they have very little control over and above what is written in their contract. This forms the basis of one of the main arguments against sell and rent back companies – that the landlord can set the purchase price, rent and terms of the lease, and is very likely to be abused.

There are a lot of calls for this industry to be more highly regulated, in order to give customers the protection they deserve, and if complaints about various companies continue to rise, then the government and Office of Fair Trading will have to step in at some point and put down some ground-rules.

Do you know anyone who has sold, or may be thinking about selling, their home on one of these "Sale Rent Back" schemes? Tell us about it by clicking the comment link below. Your identity is safe, as no email addresses will ever be published here with a comment.

Eco-Friendly Interior Design

When you decorate your home, you may not think about "going green" in the process. But maybe you should. These days more Interior Designers say green designs not only look great, but just might make you FEEL great as well. Money Editor Stacy Johnson explains… (video runs 1:26)

Foreclosures: 343,000 and Counting

The number of Americans losing their homes to foreclosure continued to soar in June, according to a report released recently.

RealtyTrac, an online marketer of foreclosed properties, reported that lenders repossessed 71,563 homes in June. A year ago, just 26,369 homes were taken back.

During the first six months of 2008, 343,159 Americans lost their homes, up 136% from 145,696 recorded during the same period in 2007.

There was a shred of good news: When compared with May, filings declined 3%. Part of that decline may be traced to the actions of some states, including Maryland and Massachusetts, which have put moratoriums on foreclosures.

Adding to foreclosure woes is that home prices have been falling all year, down more than 14% in the first quarter, according to the latest figures from the S&P Case-Shiller Home Price Index.

Price declines strip homeowners of equity, making many mortgage borrowers owe more than their homes are worth. When they're underwater, they can't borrow against home equity to help out during a rough financial stretch.

Is foreclosure looming on your horizon? Check out this website. http://ForeclosureSurvival2008.com

Housing: Where Do Obama and McCain Stand?

Wondering where Barack Obama and John McCain stand on the controversial housing meltdown issues?

Obama wants the government to step in to help homeowners facing foreclosure. McCain has gradually broadened his position to support government intervention, but wants stricter requirements for borrowers seeking aid.

Obama supports:

• Allowing troubled homeowners to refinance to a loan insured by the Federal Housing Administration.
• Allowing subprime borrowers to challenge foreclosure proceedings if they've been subjected to abusive lending practices.
• Creating a 10% tax credit for homeowners who do not itemize their taxes.
• Creating a $10 billion fund to help victims of predatory loans.
• Creating a separate $10 billion fund to help state and local governments maintain critical infrastructure.
• Authorizing bankruptcy judges to reduce mortgage principal.

McCain supports:

• Giving homeowners the chance to have their loan modified, provided they meet certain criteria.
• Offering of financial assistance to borrowers contingent upon lending reform.
• Providing more funding for community development groups so they can expand their home rescue efforts.

Both candidates say they want to go after predatory lenders. Obama introduced the STOP FRAUD Act in the Senate and now it's a part of his platform. McCain called for creating a task force to investigate criminal wrongdoing in the mortgage lending and securitization industry.