Beyond The Headlines

Sacramento Bee

42,000 of California's jobless will get help with mortgages

The U.S. Treasury Dept. announced yesterday it is providing additional funding to a California

program to help homeowners struggling to make their mortgage payments due to unemployment.

The program, administered through the California Housing Finance Agency (CalHFA) will assist

struggling borrowers make up to six months of mortgage payments. Lenders will be asked to match the government contribution.

KEEP THIS IN MIND

• The program aims to help 19,000 unemployed borrowers in California between its

November launch and next July. An additional 23,000 borrowers will receive help over the

next two years, according to CalHFA estimates.

• To qualify for the program, borrowers must be unemployed and eligible for unemployment

benefits, and live in the home tied to the mortgage. Borrowers must be fewer than 90 days

behind on mortgage payments and meet low- and moderate-income guidelines. Income

requirements can be found at http://keepyourhomecalifornia.com/income.pdf.

• CalHFA is focusing on providing aid to unemployed borrowers struggling with purchase

loans, excluding refinanced loans. According to CalHFA officials, it is too difficult to decide

who "cashed out for a good reason and who didn't."

• More information about the CalHFA program, including eligibility, program summary,

income requirements, and frequently asked questions, can be found at

http://keepyourhomecalifornia.com.

To read the full story, please click here:

http://www.sacbee.com/2010/08/12/2953229/42000-of-californias-jobless-will.html

Bloomberg

"Buy and Bail" homeowners get past loan restrictions

Real estate professionals call it "buy and bail," acquiring a new house before the buyer's credit

rating is ruined by walking away from the old because it's "underwater," or worth less than the

mortgage. It's an attempt to escape payments on a home whose value may never recover while

securing a new property, often at a lower price with a more affordable mortgage.

To read the full story, please click here:

http://www.bloomberg.com/news/2010-08-10/-buy-and-bail-homeowners-get-past-mortgagehurdles-from-fannie-freddie.html

The Mercury News

Median home prices up in San Jose, San Francisco areas, most U.S. cities

Home prices rose in nearly two-thirds of U.S. cities-including the San Jose and San Francisco

areas-this spring as buyers took advantage of tax incentives that gave the struggling housing

market a temporary jolt.

To read the full story, please click here:

http://www.mercurynews.com/breaking-news/ci_15742043

Los Angeles Times

Short sales soar in California, U.S.

Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California and the Sunbelt, according to a report released Tuesday.

To read the full story, please click here:

http://www.latimes.com/business/la-fi-short-sales-20100811,0,7193924.story

In Other News...

The Washington Post

FHA tells Congress: Mortgage insurance claims are down; home prices a concern

Mortgages backed by the Federal Housing Administration have performed better than expected so far this fiscal year, though the improvements could be overturned if home prices sink, according to a report the agency submitted to Congress last week.

To read the full story, please click here:

http://www.washingtonpost.com/wpdyn/content/article/2010/08/03/AR2010080306749.html?hpid=sec-business

CNN Money

20 percent of mortgages are underwater

More than 20 percent of the nation's mortgage borrowers owe more than their homes are worth.

To read the full story, please click here:

http://money.cnn.com/2010/08/09/real_estate/fewer_underwater_borrowers

Los Angeles Times

Shopping around for title insurance can cut closing costs

If you finance your home through the normal lending process, a title search will undoubtedly turn up any liens for delinquent property taxes, unpaid loans, and unsettled claims by subcontractors for labor and materials.

To read the full story, please click here:

http://www.latimes.com/business/realestate/la-fi-lew-20100808,0,7858566.story

CNN Money

Foreclosures rise in July

The latest foreclosure numbers carried a mixed message: They're up 3.6 percent from the month

before, but down 9.7 percent from 12 months earlier.

To read the full story, please click here:

http://money.cnn.com/2010/08/12/real_estate/July_foreclosure_totals/index.htm

What you should know about the market

• Companies promising to reduce or eliminate credit card balances and other debt for

customers no longer will be allowed to charge an up-front fee. The Federal Trade

Commission (FTC) recently announced new restrictions to crack down on the debt

settlement industry. Beginning Oct. 27, debt settlement companies only will be able to

charge a fee once a customer's debt has been reduced, settled, or renegotiated.

• The new FTC regulations also require debt settlement companies to disclose to customers

how long it will take to get results, how much it will cost, and any negative consequences

that could arise from the process.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®