May 9, 2007

Slump isn’t slowing vacation home sales

(Via AP)
According to the NAR "vacation homes were not hurt by the general slump in sales last year. Instead, vacation homes rose by 4.7 percent to a record of 1.07 million units, up from 1.02 million sales in 2005."


Credit Unions: The Silent Source

According to Bob Tedeschi of the NY Times, "As a result of the sub prime lending crisis, even borrowers with good credit are struggling to find lenders....
"About 200 credit unions affiliated with the Credit Union National Association have offered a low-interest Home Loan Payment Relief mortgage since late 2005. The program is limited, with some exceptions, to borrowers with household incomes at or below their area’s median income."

New York Times

As US foreclosures mount, states step in

The Christian Science Moniter via Yahoo News
• Ohio, which has one of the highest foreclosure rates in the country, started taking applications this week to give fixed-rate loans to homeowners with subprime, adjustable-rate mortgages who've seen their monthly payments skyrocket beyond their means.

• Colorado is considering a law that would make it a criminal offense for appraisers to falsely inflate the value of homes in mortgage proceedings.

• Legislation is also under consideration in Indiana that would create free consumer counseling for those facing mortgage problems.

• At least four states have set up task forces to study foreclosures and recommend solutions.

• At least a dozen states have enacted laws designed to crack down on fraud by so-called "foreclosure consultants" who claim to help homeowners in trouble.

Is it Better to Buy or Rent?

Here is a very nice little chart indicating that it is better to buy than rent AFTER about 11 years, based on certain assumptions. This fits right into our view that owning is still a plus, but flipping or short term attempts to "play a market" may not be wise now.

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