Real Estate Blog

The Senate passed "housing rescue bill" may into effect on October 1, 2008.

Here are some KEY provisions of the law:

1. Qualified borrowers may be eligible for the "rescue" package if they have at least 31% of their gross monthly income on mortgage debt.

2. They can be up to date on their mortgage or in DEFAULT, but in either way they must prove that they will not be able to keep paying their existing mortgage payments.

3. The existing mortgage lender will have to voluntary agree to write down the current Note amount to 90% of the NEW value of the home (appraisal will be ordered).

4. If there is a 2nd mortgage the lien has to be satisfied by the borrower's.

So, if all the criteria above are met; the borrower(s) new mortgage payment can be significantly lower!!!

Good News for those considering investing, buying or selling! Sales volume is up in most areas of the Inland Empire as previously unaffordable homes are now within reach.  Families are entering the market seeking affordably-priced homes and finding lots of great opportunities in a market now flooded with REOs. And, of course, an increase in demand foretells of future price appreciation.
 
Click on the link below for a great article on the State of the Inland Empire Housing Market by regional economist Dr. John Husing.

Quarterly Report