The Associated Press also reports that JPMorgan Chase and Wells Fargo saw higher earnings with more Americans taking out mortgages, paying them on time and taking advantage of the low interest rates to refinance.

News.yahoo.com reports that declining home prices is reaching an end, and has even done so already in some markets, although it cautions that, if another wave of foreclosures occur, that may reverse matters. DSnews.com reported that California home prices are going up after 16 months of decline, which is partly fulled by a declining inventory. Realtytimes.com reported that 35 states are now listed in the latest National Association of Home Builders/First American Improving Markets Index (IMI) numbers.

The USDA rejected the bid of $3.25 million for the Yavapai Downs. It is unlikely, at this stage, that there will be horseracing this year.

An amusing headline in the Daily Courier’s Real Estate section this past Friday, read: ‘Dealing with outrageous people a hazard of being a home inspector.” I immediately thought that anyone in any profession that caters to the public could articulate on similar encounters.

Received an email from Chris combs of the Combs Law Group stating that the Mortgage Forgiveness Debt Relief Act of 2007 (“2007 Act”), which provides for an exemption for any income tax on debt forgiveness for money used to purchase, or make improvements to, a principal residence, is scheduled to expire January 1, 2013. If no extension is given to the act,  sellers will pay income tax on the amount of the debt forgiveness by a lender in a short sale.  Rep. Charles Rangel (D-NY), the sponsor of the 2007 Act, introduced a new bill HR 4202 on March 19th, called the Mortgage Cancellation Relief Act of 2012 (“proposed 2012 Act”). This proposed 2012 Act is more or less one sentence extending the January 1, 2013, expiration date of the 2007 Act for two years until January 1, 2015. While all of the other Democrats besides Rep. Rangel on the House Ways and Means Committee are co-sponsors of the proposed 2012 Act, none of the 22 Republicans on the House Ways and Means Committee agreed to be a co-sponsor. Not an encouraging sign, especially considering that Speaker John Boehner (R) voted against the original 2007 act. This obviously could have a devastating effect on the recovering housing market.

On the local level here in Prescott , the Daily Courier ran an article on an entrepreneur partnering with lot owners to help them build affordable semi-custom homes in the Hassayampa Golf Club, Eagle Ridge, Whispering Canyon and Prescott Highlands subdivisions. In the Yavapai Hills subdivision, there are currently three new homes under construction and another three lots being readied.

Dsnews.com reported that Bank of America may be offering mortgage reductions of up to $100,000 for some of its borrowers.

An article by the Associated press offered a reminder that next to bankruptcy nothing ruins your chances of obtaining a home laon than foreclosure. Mortgage lending guidelines, which most banks follow, prohibit them from making loans for a number of years. Those that are able to qualify for a home loan can expect to pay higher interest rates because of their foreclosure history.  Those who have a foreclosure in their credit history can expect to wait from 2 to 7 years before a lender will even accept a loan application from them. Other creditworthiness items such as a persons credit score, employment history, etc take a back seat to foreclosure with potential lenders.

Home Security: Received the following useful information for Lee Congdon, a Sedona Realtor regarding home security.

1)Make it a habit to lock and secure your doors and windows even when leaving for a short period of time. This includes setting your alarm system.

2)If you are going to out of town for a few days, let a trusted neighbor know when you will be out of town and whether or not there should be anyone at your home.

The Daily Courier this week, in the Real Estate section, carried an interesting article on how CC&R’s (Covenants, Conditions & Restrictions) of homeowner associations can often defy common sense. It is a reminder that, whenever a buyer is looking at a community to live in, time should be taken to read the CC&R’s very carefully. With the seemingly myriad of insurmountable paperwork involved in purchasing a home that CC&R’s and SPDS’s (Seller’s Property Disclosure Statement) tend to be overlooked. They are very important documents that may mean whether living in a new home is an enjoyable experience or a nightmare.

An article in USA Today mentioned lenders paying borrowers to do short sales. A new twist since short sales have been so cumbersome and difficult to go through with most lenders. While the process has improved over time, it will be interesting to see if this new wrinkle will both speed up the process and encourage more short sales.

To speed up the short sale process three senators did introduce legislation in Washington to address it. It proposes a 45 day response time from lenders.

According to the Associated Press money, from the mortgage settlement with the top mortgage lenders, is now being diverted to offset state  government budgets. The outrage to help the foreclosed homeowners, that precipitated the settlement, is naturally forgotten to the needs of the politicians. Should anyone be surprised.

Prescott area homes sales were largely unchanged in the first six months of 2011 with 1,258 sales compared to the first six months of 2010 with 1,156 sales.

According to CoreLogic , in April the Prescott area foreclosure rate rose by .33% over April 2010to 2.88%, which is still below the national averge of 3.47% for April. The number of mortgages that were 90 days or more delinquent dropped .93% to 7.16% in the same month.