Unemployment Vexes Foreclosure Plan

Unemployment Vexes Foreclosure Plan
The Wall Street Journal

Rising unemployment is complicating the Obama administration's effort to reduce foreclosures and stabilize the housing market.

The first wave of mortgage delinquencies was sparked by borrowers who took out subprime mortgages and other risky loans that became unaffordable, causing them to fall behind on their monthly payments. But the current wave is increasingly driven by unemployment or underemployment, economists and housing counselors say.

Banks' foreclosure rights questioned
The Arizona Republic

A growing number of home-mortgage holders in foreclosure are taking their lenders to court, where they are posing fundamental questions about the banks' legal right to repossess their homes, said an attorney addressing a packed crowd of lawyers Thursday at the State Bar of Arizona 2009 Convention in Phoenix.

"I'm actually going to raise more issues than I have answers for, because that's what's happening here in Arizona," Tucson attorney Beverly Parker, of Southern Arizona Legal Aid, told an audience of about 200 inside a meeting room at the Arizona Biltmore Resort and Spa.

Appraisal issue coming to a head
Inman News

An increasingly common complaint of Realtors -- that "lowball" appraisals below agreed-upon sales prices are derailing many home sales -- has been taken up by industry trade groups.

The National Association of Realtors and the National Association of Home Builders have both identified issues surrounding appraisals as a factor putting a damper on sales of new and existing homes in May -- the first month new rules governing appraisals conducted on loans slated for purchase by Fannie Mae and Freddie Mac took effect.

C.A.R. Reports May Home Sales Increased 35.2 Percent, Median Home Price Declined 30.4 Percent
Business Wire

LOS ANGELES -- Home sales increased 35.2 percent in May in California compared with the same period a year ago, while the median price of an existing home declined 30.4 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“With affordability for first-time buyers at a record high, sales of existing, single-family homes continued to remain above the 500,000 level for the ninth consecutive month,” said C.A.R. President James Liptak. “Buyers are beginning to realize that the combination of favorable home prices, historically low mortgage rates, and first-time home buyer tax credits, may not align again for many years.

U.S. Consumer Sentiment Increased to 70.8 in June
The Los Angeles Times

Confidence among U.S. consumers rose this month for a fourth straight time, reflecting signs that the worst of the recession has passed.

The Reuters/University of Michigan final index of consumer sentiment gained to 70.8, the highest level since February 2008, from 68.7 in May. Today's measure compares with a preliminary June reading of 69. During the expansion that began in late 2001 and ended in December 2007, the index averaged 89.2.