Now for some national news...

Here are a couple articles from the Washington Post that might be helpful as you consider the real estate market today:

Mortgage Relief for Unemployed

Attempting to overhaul its foreclosure prevention program, the Obama administration took noteworthy steps to help the unemployed stay current on their mortgage through tough times.
While the trouble in the housing market stemmed originally started with loose lending practices, high unemployment and underwater homeowners are now the major factors contributing to foreclosure.
The program will now:
•Require lenders to “slash” payments for the unemployed for 3-6 months. In some cases, payments could be deferred entirely.
•Cut payments to at least 31 percent of previous income, about the same amount that unemployment insurance pays.
•Become effective over the next 6 months.
•Not require new taxpayer funds. The program has only used a small portion of its $75 billion allocation.

Source: The Washington Post

Helping Underwater Homeowners

Underwater borrowers are one of the major driving forces behind foreclosure. It’s estimated that one in four homeowners owes more than their home is worth. Economists categorize these borrowers as “high risk” because they can’t sell or refinance.
The government is taking the following steps to address underwater borrowers:
1.Principal Reduction. Lenders will be asked to reduce the principal loan balance if it is 15 percent or greater than what the home is worth. This will only be available to borrowers who are current on their mortgage payments and they will need to stay current to “earn” the full reduction over three years.
2.FHA Refinancing. The Federal Housing Administration (FHA) offers refinancing alternatives for borrowers who are underwater and offering incentives for lenders who reduce the principal on primary mortgage by at least 10 percent.
3.Second Mortgages. The government will double the incentive amount paid to lenders who help modify second mortgages. Half of all troubled homeowners have second mortgages, which have been an obstacle in providing modifications.
4.Short Sales. Incentives to lenders who help troubled borrowers that don’t qualify for the program, most commonly a short sale, have been increased.

Source: The Washington Post