Real Estate

Foreclosures Rise: Banks Consider Principal Reduction

From Bloomberg, Principal Cuts on Lender Menus as Foreclosures Rise: Efforts by U.S. banks to help distressed homeowners have focused mainly on temporary fixes such as interest-rate reductions that may only put off the day of reckoning, despite policy makers wanting them to do more. Banks may be forced to resort to a remedy they’ve been trying to avoid — principal reductions — as another wave of foreclosures looms and…

Home Prices in Southern California Rise

There’s no doubt that housing will be central to any economic recovery. But before we can declare a bottom in housing, we must first see a recovery in the most battered regions, like California. Are we seeing signs of a bottom right now? News from the LA Times that Southern California median home price climbs 2.6% in August certainly point in the direction. From the LA Times: Southern California’s median…