Programs provide assistance...

The March wind must have pushed potential buyers to rethink any decision to postpone their purchase. The activity last month, although all statistics are not yet in, appears to have come close to doubling sales production from the preceding month. Wow!

Does this mean we are out of the downward economic spiral and beginning to spin toward that light at the end of the tunnel?

So many factors have created the advantage on the buy side. The lowest interest rates in many years, the abundance of selection available in the real estate market and the incredible values in prices. But the fact remains that many homeowners have over-financed their property. Homeowners, who have owned their home for many years, refinanced when property values were high and pulled the equity out of their home for use on other things. In addition, buyers in the high market times were given loans they could barely afford, and some of those loans had an escalation clause to increase the interest rates in the future.

Some sellers had placed a large equity line on their home to speculate and purchase more real estate as an investment. Even conservative homeowners with a small loan may have found themselves without a job or a decrease in pay, creating a financial hardship. Lenders, in the past, were eager to lend, and in some cases greedy to lend, and allowed homeowners income ratios to high levels of debt. When the economic conditions changed, income for many decreased. This created a devastating situation for the homeowner who over-financed. The result is the creation of the short sale and foreclosure market.

How do we help those homeowners faced with losing their homes?

President Barack Obama has created the HUD counseling hot line. Financial counseling is available by going online at financial stability.gov or calling 1-888-995-4673 Be prepared to have all of your financial information at hand. On the local level, Brevard County judges have created a plan to assist homeowners. The plan cannot and does not eliminate foreclosure, but offers the chance for the homeowner to mediate with the lender before final foreclosure proceedings. The Brevard County plan, created by the 18th Judicial Circuit Court, mandates communication/mediation between the lender and homeowner. The procedures for this plan are found by going to FLCourts18.org or calling 617-7238 for a mediation appointment. The cost is $250.