| A group of analysts from Deutsche Bank recently | | | | homes while property values dive, mortgage rates |
| forecast metro New York home prices to plunge | | | | keep going up, and the rate of foreclosure filings |
| 40.6% from March prices. The banks projections | | | | climbs skyward, the demand for mortgages, |
| include Westchester, northern New Jersey and other | | | | according to a weekly MBA report Wednesday, |
| nearby areas. Deutsche analysts, led by Karen | | | | plummeted in the second week of June, resulting in a |
| Weaver, took into account numerous variables to | | | | 7-month low for the index that tracks mortgage |
| reach their prediction, with affordability being a | | | | applications, despite 30-year FRM average rates being |
| decisive factor. This sobering projection came | | | | tempered. |
| amid—and in contrast to— Deutsche’s | | | | As interest rates are much higher than in recent |
| national projections of 14% for home price declines. | | | | weeks, MBA’s 23.3% reported decline in |
| According to Weaver, New York City's main problem | | | | refinance activity is yet another staggering blow to |
| is exorbitantly high real estate prices, rather than the | | | | the already flagging market. |
| financial industry collapse. As the Deutsche report | | | | For the concerned seller, sitting back and allowing |
| notes, New York’s 2007, second quarter, | | | | foreclosure to come down on his/her head would be |
| metropolitan home prices peaked at $552,000. The | | | | disastrous. If you can’t make your mortgage |
| median price had dropped 19%, to $446,000, by the | | | | payments, the very last thing you should do is remain |
| first quarter of 2009, but today, New York tops the | | | | idle. |
| list as the nations least affordable market among the | | | | If you ever hope to buy a house again within the |
| 10 biggest metropolitan areas. | | | | next several years, the short sale stands the best |
| Combine Deutsche Bank’s astounding prediction | | | | chance to avoid or stop foreclosure. A short sale |
| with findings from Mortgage Bankers Association, for | | | | will let you sell your home for less than you owe, |
| the week ending June 12, [which showed a 15.8% | | | | even if your balance exceeds the market value of |
| decline in loan applications], along with | | | | your home. Only a short sale specialist is truly |
| RealtyTrac’s May foreclosure report, showing an | | | | qualified to push through the rigorous trappings of a |
| 18% rise in foreclosure filings since May 2008, and it | | | | short sale. And for real foreclosure help, the seller |
| becomes obvious the prevailing wisdom among New | | | | should consult only with a short sale service group |
| York homebuyers is to seek foreclosure help from a | | | | with years of successfully completing a great many |
| short sale service group or short sale specialist. | | | | short sales. |
| As homeowners have little hope of selling their | | | | |