Saturday, February 27, 2010

U.S. Homes Sales Down Again

U.S. President Barack Obama

Two days ago it was announced, new U.S. home sales declined to its lowest levels on record for the month of January 2010. Today, it was reported the sale of preexisting homes in America fell to record low numbers as well, as people are having great difficulty unloading their properties, with a lack of eligible buyers.

This is not good, as it will create more foreclosures, with 2009 establishing a record number of mortgages going into default. Some banks are being cooperative, but some are not. I have heard and read of success stories, regarding homeowners who had their mortgages successfully modified.

However, some banks are still swooping in on mortgages attached to homes with a significant amount of equity and charging excessive, exorbitant penalty and legal fees, in trying to maximize profits.

In one such case, a property was valued at double the amount the bank is owed and a devastated homeowner bulldozed the property rather than let the bank auction it off.


New Home Purchases In America Hit Record Low

U.S. Economy: Sales of Previously Owned Homes Unexpectedly Fall

February 26, 2010, 12:52 PM EST - Feb. 26 (Bloomberg) -- Sales of previously owned U.S. homes unexpectedly dropped 7.2 percent in January to a seven-month low, indicating a lack of job growth is undermining government incentives to bolster the housing market.

The decline to an annual pace of 5.05 million, reported today by the National Association of Realtors in Washington, was the second-largest on record after December’s 16.2 percent plunge. A separate report showed the economy grew at a 5.9 percent pace last quarter, faster than initially estimated...