C.A.R. - Chief Economist Leslie Appleton-Young presentation.

Stretching about 20 miles south from the Los Angles International Airport, the coastline of Santa Monica Bay is known as "the South Bay." First made famous in surf songs by native sons the Beach Boys, the area today is one of the nation's most desirable — and pricey — second-home areas.

Loan rate comparison between rates as of 4/2/09 vs November 12, 2008

$15,000 homebuyer tax credit, higher loan limits, lower rates in play as part of stimulus bill and financial stability plan for banks

The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.

Although it is too early to tell where the recession will measure in comparison to others, such as the Great Depression of the 1930s or the downturn of the 1980s, Kaye notes, “none of the economic signs on the horizon are encouraging; most of the leading indicators point south.”

To assist anyone helping borrowers or negotiating short sales, here are some lenders and services contact numbers and websites.

The number of sales contracts signed increased by 6.3%, as buyers respond to fire sale prices driven by a record number of foreclosures.

An old trick of the real estate trade is price-rent ratio, sort of the property equivalent of a stock's price-earnings ratio. What it's saying lately is encouraging, though not downright bullish.

With a proper real-estate focused stimulus measure, home sales could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country. Stable home prices will, in turn, lessen foreclosure pressures and lay the foundations for a solid economic recovery as the nation’s 75 million homeowners regain confidence.

The facts: 1. An individual may be required to put down 20 percent based on that person’s financial situation. But that is not an across-the-board requirement for all borrowers. 2. A borrower who puts down less than 20 percent is required to obtain mortgage insurance. 3. Even in a declining market, a borrower is required to make at least a 5 or 10 percent down payment. 4. FHA requires a 3.5 percent down payment by borrowers, so long as they meet a 31 percent housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5 percent down payment (even with family help) can become a homeowner.

Following two years of steep declines exceeding 20 percent, annual sales in the California housing market are expected to increase 12 percent to 395,600 in 2008, with a further 12.5 percent annual increase projected for 2009. The increase in sales is largely attributed to the growth in the absorption of distressed properties with mark-downs in prices.

MK Signature

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Program for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanies Loan Modifications: Mortgage Workout Programs for Homeowners

Chart accompanying NAR 2008 Home Sales Update and 2009 Projections

Explanation accompanying article - You May be Eligible for a Temporary Reduction in the Assessed Value of Your Property

Form accompanies You May be Eligible for a Temporary Reduction in the Assessed Value of Your Property

Article accompanying You May be Eligible for a Temporary Reduction in Your Assessed Value of Your Property