The incongruent nature of those four cities reminds us that it is feasible to lose big on housing in hastily growing cities, such as Atlanta and Las Vegas, and in declining cities, such as Cleveland and Detroit.

About the existing market, the best that can be said is that it offers abundant affordability and the majority of economic recovery doesn’t depend on a big housing rebound.

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Mortgage Bankers Association economist Michael Fratantoni stated,” Remarkably low rates are not enough.” There were many prospective buyers who simply didn’t have the equity in their home, compounded with poor credit, or battling the faulty economy.

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This method concurrently drives down mortgage rates on definite loans and permits lenders to back them with negligible capitol. This spurs on a formula for bubbles and bailouts – where banks and other establishments hold more mortgage securities than would generally be permissible.

While the 30-year mortgage has a place in the U.S. housing market, it’s unclear why we should continue funding a product with this kind of history.

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Over two years have passed since recession officially ended, and many people still can’t succeed in obtaining loans or meet elevated down-payment requirements. Those that do qualify often hold off, out of fear that the housing market will continue to plummet. A decline in first time buyers has rendered the market in a critical state.

In November, the median sales price rose 2.1 percent to $164,200. The lofty rate of foreclosures has made resold homes more affordable than new homes. The norm price of a new home is generally 30 percent higher than the price of one that’s been occupied before twice the normal increase.

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James Saccacio, co-founder of RealtyTrac stated, “Despite a seasonal slowdown similar to what we’ve seen in each of the past four years, November’s numbers suggest a new set of incoming foreclosure waves.” He went on to say, “We’re still not out of the woods yet. We have to get jobs going and property values have to move up before we get rid of this overhand of negative equity.”

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Previously, NAR was accused of over counting existing homes sales. CoreLogic, a California-based real estate analysis firm, claimed the sales may have been exaggerated by as much as 20 percent. The depressed housing market is a key obstacle to healthy economic development and a saturation of unsold homes on the market continues to suppress the sector.

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There are three main scams to be on the lookout for. First is the Phantom Help Scam – where a fraudster calls and requests a fee in return for their services to get your lender to cut your mortgage payments or stop foreclosure proceedings. Ultimately, these scammers,you’re your money, disappear. Next is the Rent to Buy Scam where fraudsters convince you to sign over the title to your home as part of a deal that lets you rent your home with the option to buy it back later. According to the FTC, the terms of the deal are so high that it’s impossible to buy back your home.The final scam is the Bait And Switch, where a scammer presents you with reams of paperwork to “prevent” the foreclosure. You think you’re signing to save your home, but in reality you’ve just signed it over.

If a company guarantees that they can stop a foreclosure proceeding, that’s the signal that something is wrong. There is no guarantee that your home will be saved, even working with a legitimate counselor (although your chances will greatly increase), and they don’t assure you as such. To steer clear of falling victim to mortgage-relief scams, the Federal Reserve suggests homeowners deal with HUD-approved foreclosure counselors and avoid paying hundreds or thousands of dollars for assistance. And most HUD-approved housing counselors won’t charge anything for counseling services.

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An increase in housing prices would help boost net worth by raising home equity. Home values have dropped dramatically since the start of the Great Recession in December 2007. Today people have less equity in their homes. During the July-September period, home values plummeted to $16.1 trillion, down from nearly $21 trillion in 2007, before the start of the recession.

Economists predict a further fall, when banks resume foreclosing on millions of homes with past-due mortgages. Many foreclosures have been delayed because of a government investigation into mortgage lending practices, as well as the holidays.

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Officials had reported that discussions on the size of loans from euro zone central banks were opening at a practical level after finance ministers from the currency union agreed to consider the option. The hope is to increase the IMF’s resources so the fund may provide a viable backstop if Spain and Italy ever require an emergency loan plan.

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LPS reports that 7.93% of mortgages were delinquent in October; down from 8.09% in September, and 9.29% in October 2010, but the in-foreclosure rate at 4.29% set a new record high. LPS stated “Judicial vs. non-judicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from state to state, with non-judicial foreclosure inventory percentages less than half that of judicial states. This is largely a result of the fact that foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial. Non-judicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in non-current loans percentages.”

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