Guy Adams

The foreclosure crisis continued to grow in the first half of 2009, affecting more than 1.5 million homes, according to a mid-year report from foreclosure listing service RealtyTrac Inc.

The report cites a 9 percent increase in total properties in foreclosure compared to the previous six months, and a nearly 15 percent increase in total properties facing foreclosure compared to the first six months of 2008.

The report also says that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.

"In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels," said James J. Saccacio, chief executive officer of RealtyTrac, in a prepared statement.

States with the highest foreclosure rates are:

• Nevada
• Arizona
• Florida
• California
• Utah
• Georgia
• Michigan
• Illinois
• Idaho
• Colorado

States with the highest number of actual foreclosures are:

• California
• Florida
• Arizona
• Illinois
• Nevada
• Michigan
• Ohio
• Georgia
• Texas
• Virginia

Source: RealtyTrac (07/16/2009)

It's time to remind first-time home buyers that in order to qualify for the government's $8,000 gift in the form of a tax credit, the deal must close by Dec. 1.

Buyers should have a purchase contract signed by early October, so they have 45 to 60 days to arrange financing and safely close the deal.
There's not as much sand in the hourglass as we may think,

Source: Chicago Tribune, Mary Ellen Podmolik (07/11/2009)

The Obama administration is reportedly considering a program that would give loan forbearance to the unemployed. The aim of the program is to provide help without distorting the housing market.

The program would augment the federal loan modification program, giving unemployed workers more time and financial leeway to qualify for a new loan.

So far the loan modification program hasn't been very successful for a variety of reasons, including the declining equity many troubled borrowers have in their homes and rising unemployment figures that make lenders unwilling to participate.

Last week, the U.S. Treasury Department asked the 25 largest mortgage service companies to appoint a liaison officer to work with the government to slow defaults. On July 28, Treasury will host a meeting with these servicers to examine whether qualified applicants are being ignored.

Source: Reuters News, Patrick Rucker and David Lawder (07/13/2009)

Homeowners who want to go green and are looking for a source of alternative energy might consider the Windspire by Mariah Power.

The 1.2 kilowatt-producing mini-windmill can cut a typical household's energy use by 25 percent in an area where the wind speed averages 12 mph. In urban Raleigh, N.C., near where the Windspire is being reviewed at North Carolina State University, the turbine will produce only 5 percent to 10 percent of a household's energy, says Brian Miles, a wind energy specialist at N.C. State's Solar Center.

The Windspire costs $6,500, plus $4,000 for installation. Federal tax incentives will help cut the out-of-pocket cost. Many states also offer tax incentives.

While there are other small wind turbines on the market, the Windspire has attracted attention because it is in use in both commercial and residential areas. George Bates of Chesapeake, Va., had two of the 30-foot-tall spires installed at his Chesapeake, Va., home. He says they are inaudible and "just an incredible piece of equipment."

Source: The News & Observer, John Murawski (07/14/2009)

Anyone who turns down an offer to sell a house should consider how much it will cost to maintain the home while waiting for the next opportunity to sell.

Here's just one example of a home seller who has felt the pain of a delayed sale.

Ed Tuttle, who has been trying to sell his unoccupied brick rancher in Oklahoma City for nearly two years, spends an average of $500 a month for utilities and maintenance along with the $1,600 mortgage payment. He also has repaired a hole in the roof caused by squirrels, hired an exterminator to trap the squirrels who had moved into the attic, and replaced portions of a fence that blew down.

"It's an absolute nightmare maintaining it," says Tuttle, who has moved to Rockville, Md., for a job. "It's absolutely the most frustrating and demoralizing thing in the world."

Source: The Associated Press (07/12/2009)