U.S., Lenders Seek Ways to Head Off New Mortgage-Default Wave

U.S., Lenders Seek Ways to Head Off New Mortgage-Default Wave
October 7, 2009, Wall Street Journal

Lenders and government officials are searching for ways to head off a wave of defaults on pay-option adjustable-rate mortgages, which are threatening to become the next storm to hit the U.S. housing market. Option ARMs aren't easy to modify because of the risky features of the loans and their concentration in states where property values have plummeted the most. Once the rage in Florida and Nevada, the loans catered to creditworthy borrowers who had to stretch a great deal to buy a home in an overheated market.

Forecast: Calif. Home Sales to Slow in '10
October 7, 2009, The Associated Press
The California Association of Realtors is forecasting sales of single-family homes will dip slightly and prices will rise modestly next year. The trade association issued its 2010 housing market forecast on Wednesday, which calls for sales to decrease 2.3 percent from this year to 527,000. The group projects the statewide median price will hit $280,000, up 3.3 percent from the projected 2009 median of $271,000.

Debate Over Homebuyer Tax Credit Heats Up
October 8, 2009, NPR

If you're thinking of buying your first home, there are 8,000 good reasons to do it now.
As part of its effort to prop up the housing market, the federal government is offering an $8,000 tax credit to first-time buyers. But the offer is set to expire at the end of November.

FHA May be Setting Up Repeat of Housing Bubble, Lawmakers Worry
October 8, 2009, Los Angeles Times

The percentage of FHA loans that are delinquent or in foreclosure climbed to nearly 8% at the end of June, from about 5.5% in early 2006, according to the Mortgage Bankers Assn. And in the weeks ahead, its reserves for loan losses are projected to slip below federally mandated limits.