“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.

Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”

This new plan sounds decent on paper when you first look at it, but man it looks like a a train wreckwhen you think about it. The one idea that I like so far is the idea to pay a second mortgage company a piece of the pie. Second mortgages can block a sale unless they are able to get a piece of the action. The good thing is that I don’t think second mortgages demand a lions share and the extra $1,000 might make a difference based on what I have heard some short sale enthusiasts declare.

David Streitfield. New York Times On-line.Program Will Pay Homeowners to Sell at a Loss. 3/7/2010. Accessed 3/10/2010. http://www.nytimes.com/2010/03/08/business/08short.html

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This end unit townhouse was built in 2004 and boast approximately 1,550 Sq. Ft., 3 bedrooms, 2 1/2 baths and great storage! You can see more at http://www.gravesrealtyassociates.com/property-search/featured-properties/8741-camden-park-drive-raleigh-nc/

Directions: Glenwood Avenue/ Hwy 70 West from Crabtree to right on Ebenezer Church Road, Right on Depew into Camden Park Subdivision, Right onto Camden Park Drive. The address is 8741 Camden Park Drive and it will be on your right.

Directions to Southerby Bluffs:

From 440 Beltline: Take exit 299 Hammond Road and turn left, Follow Hammond and cross Hwy 70 then Hammond turns into Timber Drive,  Travel about 3.5 miles on Timber then turn left onto Aversboro Road, Right onto Heather Park Drive and then Right onto Southerby Bluffs.

From Downtown: Take South Saunders toward Garner and it turns into South Wilmington/ 70 East, Stay left at the 70/401 Split, Turn right onto Aversboro Road, Left onto Heather Park Drive and then right into Southerby Bluffs.

One reason for such bidding wars is that many buyers can qualify for tax credits of as much as $8,000 if they agree on a home purchase by April 30. Meanwhile, economists say mortgage rates — currently around 5% for standard 30-year fixed-rate loans — are likely to be at least modestly higher later this year as the Federal Reserve withdraws support for the market.

Analysts at Credit Suisse in New York say that rate could end the year at 5.10% to 5.25%. Mark Zandi of Moody’s Economy.com predicts 5.75%.*

I just wanted to add a little credibility to my opinion regarding where rates are heading. I think Moody’s has it best in that rates will run closer to 6% by the end of the year.

As far as housing prices are concerned, Freddie Mac CEO Charles Halderman has stated they want to price their foreclosed inventory to sell but want to refrain from putting too much downward pressure on home prices. ** What does this mean for home prices in the Raleigh area? I think they will stay around where they are now. We have seen drops around Raleigh upwards of 15% over the past 2 years (Depending on the area, some are much lower.) 2010 should prove a great time to buy a home in Raleigh.

*James R. Hagerty. Housing market shows signs of healing, but danger remains. Wall Street Journal [Internet]. 2010 Jan 27 [cited 2010 Feb 24]. Available from: http://online.wsj.com/article/SB10001424052748704905604575027370647347644.html?KEYWORDS=james+r+hagerty

**Nick Timiraos and James R. Hagerty. No Exit in Sight for U.S. As Fannie, Freddie Flail. Wall Street Journal [Internet]. 2010 Feb 9 [cited 2010 Feb 24]. Available from http://online.wsj.com/article/SB10001424052748704362004575001042824028862.html?KEYWORDS=james+r+hagerty

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