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Average home prices rose in California slightly after recent property assessments. This is some good news for California home owners, property values are on the rise after a couple of tough years of declining value. State-assessed property rose by an increase of $11.6 billion or to put it into terms that you care about in regards to your house if you live in the Bay Area, a whopping (0.3 percent). Yes, I'll agree the recovery is slower than a turtle on valium but, interest rates are at all time lows. I know, that's an overused term, and it's a shame, because they really did go lower this week because of concerns over a double dip recession and also the news that the Fed plans on buying another 400 billion in long term treasury securities. The average 30 year fixed rate this week was around 3.875% with 0 points and with a lender paid credit toward closing costs.
The mortgage bankers association has asked FHA to open 203k financing to investors once again. An FHA 203k is a loan on a property that needs repairs, and for years has only been limited to owner occupied properties. In fact, the last time investors could buy with an 203k loan was back in October 1996, when the Yankees were on their way to winning the World Series. This would be a great way to start moving some of the foreclosures that are just sitting there. It's better to have them purchased and turned into rentals, then to be sitting on the banks inventory, and considering that David Stevens, the current mortgage bankers association president is the former secretary of HUD, I'd say there's a strong possibility this could go happen soon.
We all know you don't pay your mortgage, you lose your house. Now it may take a year or two, but eventually your stuff will be moved to the street and a padlock placed on the door. That's what happened to a 101 year old widow in Detroit. She owned her home outright until her 65 year old son convinced her to take out a 80k mortgage that went into default. When he stopped making the payments, he just threw away the bills and kept the eviction notices a secret saying he didn't want to worry her. I have to tell you, I am shocked! I would have never expected anyone to be able to cash out 80k on a home in Detroit. That's like 200% Loan to value. Don't worry though, Neighbors have rallied around the woman offering her free housing.

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