President Barack Obama signed  a bill about a year ago that was to help current homeowners who are upside down on their home. The associated press reports that only about 12% of applicants have actually received any relief. 1 million owners started the application but only 116k have actually finish the process. 61 thousand owners have dropped out of the plan because they did not make a payment or did not finish the paper work to complete the process. Many are saying the plan was a Flop as it just could not reach the masses who needed it the most. Large banks are still struggling with the volume of people needing help. Bank of America has only helped about 5 % of the 240,000 people who have applied for the program.  The program was to help lower the interest rate up to 2% for 5 years and extend the mortgage to up to 40 years. A new plan was announced for the hardest hit states. Arizona, California, Michigan,Florida and Nevada will all receive 1.5 billion to assist homeowners who are underwater and unemployed.

Is the foreclosure crisis slowing down ,and an end is in sight? It seems for the first time in 3 years the number of homeowners falling behind on mortgages is slowing down. I don’t see anything bouncing back to soon. I think we will still feel the pressure of all the inventory on the market and sellers ( banks and shortales) will still feel the pressure of lowering the prices to get buyers to make an offer. It’s reported that 15% of homeowners have missed at least one payment or are in a foreclosure . Nearly half  of all borrowers were at least 3 months behind. The good news is coming from reports that the percentage of borrowers who missed just one payment is down to 3.6 from 3.8. Many expected the number to be higher as the 3rd quarter is when it normally rises.

Local numbers

3rd quarter the filings rose 2.5%   3069 to 3147
source: RealtyTrac , does not included default notices

So what do you think ? Will 2011 be a better Real Estate Market ?