The median single-family home price dropped 7.6% in the 2nd quarter of 2008 due in large part to short sales accounting for a third of all home sales in the quarter.

Home Prices Drop 7.6% in the 2nd Quarter of 2008

Nice work with the broken affiliate link.  Its been removed.

The Economic Times has a pair of interesting editorials on whether or not foreclosures are good for homebuyers:

Do Foreclosures Help Homebuyers

What's particularly interesting about this discussion? - its about the Indian market, but is just as applicable to us in the US.

Not sure what is bigger news, the release of a new DVD by the spokesperson of the American Homeowners Association guiding homeowners on a path to avoid foreclosure, or that Marketwatch.com under new owner Rupert Murdoch now uses its position as a major economic news brand to publish unedited press releases as news.  Exhibit A

The Foreclosure DVD Website itself is a little confusing.  You have the option to buy the foreclosure DVD for $49.95 with a free workbook, BUT the site also says you can view online with a free eBook download.  However, only thing we see is a sample chapter download and page geared toward steering you toward buying the DVD. 

We'll keep an eye out and see if the free online version just isn't up for the initial press release.

A subdivision in Bend, Oregon modeled after J.R.R. Tolkien’s shire has entered foreclosure and will be auctioned publicly if not sold before December.

Foreclosure Story:  Shire Enters Foreclosure

The Shire's Website:  The Bend, Oregon Shire

This is a first.  A Milwaukee man has had his $245,000 home foreclosed on because he failed to pay what was originally a $50 parking ticket.  And get this, he got the parking ticket in his own driveway.

A completely bizarre story.  For the full details, check out Milwaukee's Journal Sentinel coverage:

Home Foreclosed on due to Parking Tickets

Well, at least the amount they are willing to pay loan servicers to keep Freddie Mac backed mortgages out of foreclosure. 

Its very interesting to see the values Freddie Mac places on different resolutions to delinquent loans. 

For example:

$500 for arranging a repayment plan with a delinquent borrower.
$800 for modifying a delinquent loan.
And a whopping $2,200 for negotiating a short sale or pre-foreclosure sale.

I'll leave it at that since Marketwatch.com has a very thorough write up on the issue:

Freddie Mac Doubles Loan Servicer Incentives

An Atlanta home built by the ABC hit Extreme Makeover: Home Edition is in foreclosure after the family who received the home as a gift took out a $450k loan against it to start a business which quickly failed. 

I've always been concerned the show was giving people more home than most would be able to service or afford in the long run.  My concern was with the utilities and tax payments, but it appears ABC provides a cash gift to cover those expenses.  It never crossed my mind that the families might quickly cash out all the equity and default.  Sad opportunity wasted.

Extreme Makeover Home in Foreclosure

Remember the foreclosure relief bill?  Well, its finally passed both the house and senate and is awaiting President Bush's signature.  And this version is one he'll actually sign - thats to say it provides almost no real relief to the very people the politicians all want you to think its meant to help.

So what's in the final version of the foreclosure relief bill?

1.  A $7500 tax credit to first time home buyers.  The catch - it has to be repaid over 15 years.  How will this be administrated?  Who knows.

2.  Freddie and Fannie modernization.

3.  Increasing the amount for a loan to be considered conforming and thus insurable by the FHA. 

4.  $300B in FHA insured loans that homeowners with debt-to-income ratio greater than 31% can refinance into as long as the new 30 year, fixed rate loan does not exceed 90% of the appraised home value. 

While #4 could be prevent a large number of qualifying homeowners to avoid foreclosure, participation in the program by banks is not necessarily a sure thing. 

What's your take on the foreclosure relief bill?

I lost my house to foreclosure and all I got was this stupid t-shirt.  Angry Mob T-Shirts has released a line of foreclosure related t-shirts over at CafePress.  Who wouldn't want to sport a "Mortgage Brokers Suck" shirt, or our personal favorite "Foreclose on This" with a picture of a hand giving the middle finger.

Check 'em out:  Foreclosure T-Shirts

I know another "How to" article on buying foreclosures.  The mainstream press loves running these pieces and most of them don't really pack any useful information in them.  Today's article on how to buy a foreclosed home at SFGate.com is an exception though.  Highly informative and laid out in an easy to read way, its a good read for all skill levels of foreclosure buyers and investors.

How to Buy a Foreclosure

New Hampshire's Governor Lynch signed a bill today which is being touted as protecting mortgage holders from foreclosure.  I wouldn't necessarily go that far - its more of a "I can't believe you're just now passing this" kind of bill.  Essentially the new "foreclosure" bill just requires mortgage originators in New Hampshire to be licensed.  Imagine that.

New Hampshire Passes Foreclosure Prevention Bill 

The Michigan foreclosure crisis isn't just confined to residential property.  An Ann Arbor mall has now entered foreclosure due to back taxes and an expensive 20% loan on the property.

Ann Arbor Mall Enters Foreclosure

The Christian Science Monitor reports on a number of community based banks that are teaming with their customers to offer foreclosure rescue loans to struggling homeowners.  These grass roots community based foreclosure avoidance programs are asking savers to buy low interest rate CD's which are then earmarked as funds that can be relent at low fixed APR mortgages to homeowners who have good payment histories but are in risky adjustable rate loans they can't continue to pay.

Both struggling homeowners and those interested in finding out more about what they can do to help stem the foreclosure crisis in their communities should check out the article to find out more.

Community Banks Helping Homeowners Fight Foreclosure

A lot of the foreclosures out on the market right now are in pretty bad shape.  Worried about financing a foreclosed home that will need a lot of rehab work?  You shouldn't be.  The Federal Housing Administration (FHA) section 203(k) program let's you roll both the mortgage and the rehab construction loan into just one mortgage loan at a long term fixed rate that lets you finance both the acquisition and the rehabilitation of the property.

Section 203(k) Program Details from HUD:

203K Rehab Loans