Hope Now: What Is It?

HOPE NOW is a private sector alliance of mortgage servicers, non-profits, counselors, and investors that have assisted many homeowners avoid foreclosure. They have developed a new program in conjunction with the U.S. Treasury, the Federal Housing Finance Authority, Fannie Mae, Freddie Mac and other mortgage loan servicers for “at-risk” homeowners.

The plan, which goes into effect on December 15, 2008, helps modify existing mortgages in an effort to keep homeowners in their home. The homeowner must be in arrears 90 days or more. The mortgages must be held by Freddie Mac, FNMA or other participating lenders/servicers.

Upon obtaining homeowners detailed information, the plan will reduces the homeowner’s monthly payment to 38% of the borrower’s monthly income. The process could include all or some of the following to accomplish the reduction:

• Extend the term of the loan
• Interest rate reduction
• Principal forbearance

The HOPE NOW alliance has proven success this year in contacting distressed home owners to encourage them to work things out. They offer a toll-free hot line at NO COST to callers in need of advice. To learn more about HOPE NOW visit their website.

Safer Online Shopping

Online shopping has become a staple for many Americans, and that's especially true when the holidays roll around. But with that extra convenience can come extra risk. Money reporter Stacy Johnson has some tips to keep your online shopping safe. The video runs 1:31…

What about you? Where do you plan to do most of your holiday shopping? In stores, or online? We'd love to hear your plans. Just click the comment link below and sound off. Your privacy is 100% guaranteed, as we NEVER publish email addresses on this site.

Bad Insurance Buys

Modern life isn't cheap… so it pays to make sure you're not wasting money on anything. And that includes insurance. Are you paying for unnecessary insurance? Money Editor Stacy Johnson helps you find out in this short (1:26) video…

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Home Prices Expected to Fall Even More

Home prices are down 20% nationwide since their peak in July 2006, according to the S&P/Case-Shiller home price index. Economist Nouriel Roubini of New York University, who accurately predicted the housing slide and credit crisis, expects another 20% decline in home prices in the next year. Patrick Newport of economic forecasting firm Global Insight projects a 15% drop.

The damage will likely hit even areas that have so far escaped many problems.

The action plan if you're selling:

• Wait it out

In 2010, real estate should be stronger, with fewer homes clogging the market. So if you can wait until then to sell, do it.

• Make your place shine

In many markets, sellers will face the toughest competition not from fellow homeowners but from banks and builders. Both will be willing to cut prices dramatically to sell a foreclosed or new home.

To convince buyers that your house is worth paying up for, make sure that it's in move-in condition (foreclosures almost certainly won't be). Point out unusual qualities like wide-plank floors or stained glass that cookie-cutter new construction lacks.

• Price it below market

Find out how much nearby homes fetched recently. Once you've figured out what a buyer might pay, price your house 5% below that.

Sound painful? A recent study by a New Jersey appraiser found that houses priced below market ended up selling for more than similar houses listed above market. That's because lower prices attract more buyers.

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Pending Home Sales Fall in September

The Pending Home Sales Index for the month of September fell 4.6% to 89.2 after climbing 7.4% in August, according to the National Association of Realtors (NAR). Still, the index was up 1.6% from a year ago.

The NAR report said the dip in sales was tempered by a sharp decline in prices, which fell 9% year-over-year in September. Also propping up sales to some extent were affordable mortgage interest rates, which dipped below 6% for a 30-year fixed-rate loan during the month, according to Freddie Mac.

One bright spot: NAR reports that the drop in home prices, combined with low interest rates, have brought home buying affordability to 2003 levels.

We're interested in knowing what you think about the current real estate trends, and whether current trends will be affected at all by the recent elections, and if so, how. Use the comment link below to tell us what you think.