Jeffrey Tung's Real Estate Blog

Where do you go after your home is foreclosed upon by the bank?  Your credit is a mess and you may not make as much money as before, so where do you go?   

The Center for Economic and Policy Research has a report, “The Gains from Right to Rent in 2010″, and has suggested to allow homeowners the right to rent their home, after foreclosure.  By doing so, it may address the nation’s foreclosure problem. 

HR 5028, under Right  to Rent legislation, would allow the foreclosed homeowner to stay in the home as a renter for a substantial period of time.  This would help the homeowners from being homeless and it will help the communities that are experiencing high numbers of foreclosures.

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According to Realty Trac, “A total of 340,740 California properties received a foreclosure filing in the first half of 2010, the nation’s highest total but down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.”

It is encouraging to know that the foreclosures are on a decline, however is the real estate market going to survive the next wave of REOs? I think it will as long as the interest rates stay at today’s levels, unemployment declines, and the demand for housing remains strong.

The San Francisco market is a great example. Although the hardest hit areas in San Francisco, are in the lower and medium priced homes, the home sales have increased and spurred on the sales of the more expensive areas of the city. It is expected to continue for the rest of the 2010.

Do you think that the governmental programs from the president are helping the economy to get better? Well, it seems like it has based on a study by Realty Trac. February’s forclosures have declined by 2% from the previous month but still 6% above the level reported in February 2009. This means one in every 418 U.S. housing units received a foreclosure filing in February.

I think we are heading in the right direction but I think it is still too soon to say that we are out of the woods.

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