Legal Article On Foreclosure Related Scams

C.A.R.'s Legal Department has published a new legal article for REALTORS® entitled Foreclosure Scams and the Foreclosure Consultant Law. With the high number of foreclosures lately, foreclosure-related scams have exploded onto the real estate scene. Many scams are aimed at homeowners in foreclosure, but other scams target real estate agents, investors, buyers, tenants, and other people involved in the foreclosure process.

This new legal article addresses the legal and practical issues surrounding foreclosure-related scams. It also provides comprehensive guidelines on California's foreclosure consultant law. Some of the highlights of the new legal article include the following:

- Red flags for detecting foreclosure-related scams;
- Real-life examples of foreclosure-related scams;
- Requirements under California's foreclosure consultant law;
- Applicability of the foreclosure consultant law to REALTORS®;
- Restrictions on collecting advance fees;
- Licensing requirements for representatives of foreclosure consultants; and
- Recent 2008 revisions to the foreclosure consultant law.

Click post title for PDF link to the article.

Fed Cuts Key Interest Rate To 1 Percent

The Federal Reserve continued to shave points off the federal funds rate, reducing it by 50 basis points to 1 percent today, the lowest rate in half a century. Analysts characterized the move as another effort to stave off a prolonged downturn in the nation's economy.

"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," the Fed said in a prepared statement. "Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.

"In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.

"Recent policy actions, including today's rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth," the Fed said. "Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

C.A.R. FORECAST CALLS FOR PRICES TO LEVEL OUT AND SALES TO RISE IN 2009

Home prices throughout most areas of California will post declines next year, while sales of existing homes will continue to rise in 2009, according to C.A.R.'s "2009 California Housing Market Forecast," released today during CALIFORNIA REALTOR® EXPO 2008 (www.realtorexpo.org), running through Thursday, Oct. 16 at the Long Beach Convention Center in Long Beach.

"The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year," said C.A.R. President William E. Brown. "Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009."

The median home price in California will decline 6 percent to $358,000 in 2009 compared with a projected median of $381,000 this year, according to the forecast. Sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008.

"Sales in 2008 will be ahead of last year by 12 percent, with a further increase of 12.5 percent expected in 2009," said C.A.R. Chief Economist Leslie Appleton-Young. "However, the next couple of quarters in late 2008 and early 2009 will be marked by seasonal decreases in activity, with a pickup expected by the second quarter of next year."

Price Reduction

This 9,543 sq. ft. lot in the Hollydale area of Forestville has just been reduced to $99,900 from the previous $129,900. There is a two bedroom septic permit already issued by the County. Bring your plans and get to work!