Although the housing market is lagging behind the economy, there are particular states with several markets that are lagging behind the national housing recovery ; i.e., Florida, Las Vegas, California, Michigan, Arizona, Illinois, New Jersey . The first quarter of 2010 is looking more glum than experts anticipated. Homes which Banks have started foreclosure or repossessed is up 2.2% year over year. That number increases 5 times that rate in some of the aforementioned markets. Keep in mind that the government programs to save home owners from the dreaded foreclosure were targeting low-income home owners, which left the middle class home owner hanging with little or no assistance. According to the First American Core Logic, (data firm that tracks 97% of U.S. Mortgage Transactions) there are 5 million mortgages that are delinquent, and 36% of them are over 180 day late. Further 1 out of 14 homes meet the criteria for foreclosure. That marks a fairly steep increase from 1 in 22 homes during the same period last year. We are facing the second wave of foreclosures, and appear to be in the eye of the storm. Lastest numbers out last week indicate that there are 11 million home owners who currently owe more on their home than they are worth. America, we should prepare ourselves for an even longer road to recovery where the housing housing is concernec.
Help is on the way. This past Friday, the federal government announced that they were adding a new series of programs to assist struggling home owners who have run out of options. David Stevens, commissioner of the Federal Housing Administration stated “We’re walking that delicate balance to make sure these solutions are sustainable and not temporary,” speaking of the new efforts the FHA is taking to get the housing market back on its feet, while helping homeowners stay in their homes. The programs are extensive, but there is a vital program that addresses the upside-down mortgage issue facing millions of Americans. With this Program. homes will we refinanced at 97% of the home actual values, which will significantly lower mortgage payments for homeowners. Will will also mean forgiveness of debt, which in essence homeowners bailout. Who says the government only thinks about saving the large corporations? 
F.H.A. will likely use the $14 billion pay for mortgage insurance and cover a large portion of the write downs, so that lenders are not carrying the loss. There quite a few new programs on tap to help numb the pain for home owners. Nevertheless, the initial reaction to the refinancing program among lenders is less than enthusiastic. The F.H.A. may have to sweetin' the deal for lenders bolster their interest in making it work. Lets face it, if the lenders are not on board, it's just hot air. As the general economy gradually bounces back, the housing industry will need a lot more time to find its way back. see Part 1
K. Reilly
Cohn-Reilly Report
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