California Housing Market   “While the rest of the nation saw buyer traffic plunge after the federal tax credit expired April 30, the state credit has softened California’s blow. But now, it’s time for a reality check....And it isn’t going to be pretty. Foreclosures continue dragging down the price of existing homes, while new home builders complain of abysmal sales.”

What is a strategic default? “About 12 percent of all mortgage defaults in February were “strategic,” up from 4 percent in mid-2007..... Borrowers are more likely to stop paying their mortgages the higher their credit scores and the larger their loans, the analysts said.”

Finally help for homeowners who are underwater but simply want to refinance to obtain today’s lower interest rates: “In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.”

I hope this one’s not too little too late. I have come across too many homeowner’s who have already been foreclosed. It’s hard to hang on to a home over encumbered when you are unemployed.

“….The U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance – for up to 24 months – to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition”.

Cash In – Cash out Refinances   “In the second quarter of 2010, 22 percent of homeowners who refinanced their first-lien home mortgage lowered their principal balance by paying-in additional money at the closing table. "Cash-out" borrowers, those that increased their loan balance by at least 5 percent, represented 27 percent of all refinance loans….