I DON’T HAVE A PROBLEM, YOU HAVE A PROBLEM

25 percent of loan defaults in certain states are driven by strategy, not necessity.  They are leaving their home behind not because they can’t pay, but because they don’t want to.  In California, the fastest growing category of loan defaults is made up of people with high FICO scores.  The bailout mentality of 2009 appears to have created a moral disconnect.  Future generations will be paying for selfish behavior, not predatory lending. 

MORE CREDIT DEFAULTS TO COME

Mark Green, CEO of FICO, predicts the next six months will lead to more mortgage and credit card defaults.  “I’m a notch less sanguine than some financial observers are,” said Green, in an interview with Bloomberg. 

DISTRESSED PRICES ARE THE NEW NORM

Distressed sales increased to 33 percent of all home sales nationally last month. The high inventory of distressed properties on the market is now heavily influencing buyers’ perceptions of home prices.  Buyers are beginning to treat every home as if it were in foreclosure waiting to happen. 

EXTERIOR IMPROVEMENTS GIVE THE MOST BANG FOR YOUR BUCK

Eight out of the top 10 home improvement projects that returned the most money for resale were exterior remodeling projects under $14,000.  This figure is from the results of the 2009 Remodeling Cost vs. Value Report based on a REALTOR survey.  This confirms the importance of a home’s curb appeal and first impression.  Other improvements in the top ten included finishing the attic bedroom and minor kitchen upgrades.