Foreclosures Dipping Nationwide

Foreclosures are dipping as the number of homeowners on the brink of losing their homes dipped in October, the third straight monthly decline, as foreclosure-prevention programs helped more borrowers.

As an example foreclosure filings in Virginia fell 16 percent from a year ago, RealtyTrac Inc. said today. Also, the filings were down 4.7 percent from September. Those declines could indicate that the problem in the state may be easing.

In Virginia, 5,484 households, or one in every 597 homes, were in some stage of foreclosure activity in October, according to RealtyTrac.

The state was ranked with 19th-highest foreclosure rate in the country. We are seeing lower foreclosure rates nationwide.

Georgia Helping out GA Foreclosure Buyers with $14k

The Georgia Dream NSP Purchase Program was created to encourage the purchase of foreclosed properties. Funds utilized are an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008.

The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are disbursed in the form of a second mortgage lien with no interest and no monthly payments. The lien is released over a period of five years and six months. Funds may be used for required repairs and/or down payment assistance.

This program begins April 1, 2009 and all funds must be disbursed by June 30, 2010.

Thanks to ASG Realty Atlanta Realtors for the heads up.

Get Georgia Foreclosures here.

Affordability More than Doubles in California

Just got this off of David Hoshaw’s Newsletter.  He is a Santa Clarita Valley Realtor.With a decline in home resale prices and recent drops in mortgage interest rates (around 5% today) are prompting more people to jump into a market that is dramatically more inviting for entry-level buyers.

A study conducted recently found that the percentage of households that could afford to buy an entry level home in California stood at 53 percent in the third quarter of 2008.  That’s more than double for the same period from a year ago when only 24 percent of households could qualify.

The First-Time Buyer Housing Affordability Index study conducted by the California Association of Realtors found that the minimum household income needed to purchase an entry-level home at $287,760 in California in the third quarter of 2008 was $56,100, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment.  At $56,100, the minimum qualifying income was 44 percent lower than a year earlier when households needed $100,500 to qualify for a loan on an entry-level home.

In Los Angeles County the index stood at 42 percent, up from 20 percent a year ago. The L.A. entry-level price of $332,680 requires a minimum-qualifying income of only $64,800 and comes with a monthly loan payment of $2,160. A condo can start near $100,000 and will require less income.