There has been a lot of activity in the real estate market this month.Foreclosures are reaching record highs. The federal government is passing legislation to help homeowners avoid foreclosure and the collapse of Indy Mac Bank. Let's take a look at some of the interesting things that YOU need to know;

Foreclosures & Legislation

Two years ago no down payment, adjustable rates and no doc loans all sounded like a good idea when the housing market was still a seller's playground. Lenders say in today's buyer's market, these non-traditional mortgage programs are leading to more defaults and foreclosures, which last month reached a year-long total of 1 million U.S. homes. The number of mortgage default notices (NODs) filed against California homeowners in Q1 2008 increased by 39% over Q4 2007, to the highest level on record. Now the federal government is stepping in to help families salvage their homes. On Saturday July, 26^th, the Senate approved a housing bill to help homeowners save their homes and rescue Fannie Mae and Freddie Mac from collapse. The bill will provide much needed assistance to about 400,000 American families from loosing their homes. The bill will now go to the president for his approval and there will be specific guidelines to be met to qualify for assistance. The bill will take effect on October 1, 2008.

What should you learn from this?

If you are having problems paying your mortgage, visit the US Department of Housing and Urban Development for tips on dealing with your current situation and the latest news on some of the current/new government programs. You are not the only one suffering, nationwide there are a lot of people in your situation.

If you are not having problems paying your mortgage, some of the programs might help you make your situation better.

IndyMac

IndyMac's collapse not only weakened our financial market, it exposed their customers' deposits to possible losses. When federal regulators seized the bank's assets on Friday July 11^th, the FDIC stepped in to run the banks day to day operation and cash out those accounts that were properly insured. FDIC insurance only covers $100,000 of deposits for basic accounts and certain types of retirement accounts up to $250,000. Anything over that amount is uninsured unless a different ownership category is used. IndyMac's customers will recover only 50 percent of any amount over $100,000 in any uninsured accounts, it will affect about 10,000 customers.

What should you learn from this?

Make sure your deposits, savings, CD's, mutual funds, and any other bank investment you have is fully insured by the FDIC. Most people assume the bank will let you know about your coverage, it's your money be prepared.

Example: A man from Pasadena had $180,000 on deposit at IndyMac. The week before the bank went under, he went to withdraw $80,000 of his money to take somewhere else for insurance. The teller told him he could change his ownership to increase the insurance on his deposits. After FDIC took over, they declared his ownership category invalid. He is now fighting to keep half of the $80,000 that was uninsured because he was given bad advice by the banks teller.

Buyers

The market is ripe in a lot of cities in LA and Orange Counties, make sure you are taking advantage of them. Most of the inventory is REO, foreclosures, and corporate owned properties and banks are desperate to get rid of them. The best deals can be made when you strategize, plan, and research. Your agent should be able to find you the home that meets your financial and living needs.

Sellers

The market is tough out there so be prepared to make hard decisions. Be totally committed to selling and understand that location, upgrades, and space dominate the prices in this market. Your agent can give you comprehensive market analysis so you can do what is best for you.

Furthermore, if you are investing (buying, selling, investing, or holding on to your home) in this market prepare yourself. Knowledge is power and power is money. Visit my site for more information, listings, my newsletter with helpful tips, and to learn more about me www.mannymeneses.com