My Financial Healthcheck

State officials continue to offer suggestions to help stem the foreclosure tide, the ideas are reduce loan principal, reduce interest rates or extend terms of the loan for those who are risking default on their loans.  It was recommended that homeowners with option arms get help since most will have their interest rates adjust higher in the next couple years.   The other suggestions were limit paperwork, expand counseling and mediation efforts, suspend foreclosure proceedings and help the unemployed.  Home construction fell in December 4%, permits were up 9% in November, existing home sales sunk 16.7% in December which was a much weaker figure that expected.  The decline was blamed on the then expiring First Time Homebuyer credit in November which was extended until April 2010. Some think the extension of the credit will recharge the housing market, I don’t.  Home prices fell in November for the first time in seven months,  they declined 2% from October, I see this as a trend which may continue.  Many homeowners have tried to apply for modifications but have been waiting many months to hear if they qualify for a permanent adjustment to their mortgage. The President’s plan to help some 4 million homeowners has been a failure, as has been HERA and the recent changes with regards to the GFE (Good Faith Estimate) which so far is a mess since every lender has a different interruption on what to do.  All these efforts were to demonize the banks and help consumers, just the opposite has happened, people are more confused with the process.  The process of getting a mortgage has become more difficult, it’s very hard to get approved now, if the appraisal does not kill a deal then the tightened guidelines will.