Wisdom

"Wisdom is knowing when you can't be wise."
- Paul Engle

Just how bad is it?

With the many headlines and stories about rising interest rates, falling home values and rising foreclosures, you would think the sky is falling. But just how bad is it?

Turns out, not all that bad for most of us. For starters, long-term fixed rates are only about .5% higher than 6 months ago and no higher than they were a year ago at this time. BUT underwriting guidelines have tightened considerably and will get stricter before they get easier.

Housing prices nationally are off about 1% from a year ago. In the Bay Area, median prices are flat to slightly higher than a year ago. The real problem for home owneres is when they have to sell quickly and/or are in less desirable locations. Then prices take a hit. Sometimes a big hit!

It has always been important to maintain liquidity when you own real estate so that you can survive personal setbacks and market challenges. this is especially true now.

With Thanksgiving just around the corner, this year I think Chicken Little would look great on a platter stuffed with all the fixin's at dinner time.

Foreclosure Timeline*

Day 1: Notice of Default recorded.

Day 14 Notice of Default must be mailed to borrower 10 days after recordation.

Day 91 Notice of Default Sale recorded, published, and mailed (lenders usually file 31 days before the sale because of the IRS notice requirement).

Day 115 Deadline to cure default (Five business days before trustee's sale).

Day 122 Trustee's Sale (Deadline to pay off loan is any time before the trustee's sale begins.)

*California Real Estate Special Report: "Legal guide to Foreclosure-related Transactions." Supplement to California Real Estate Magazine.