Thursday, December 15, 2011

Report says California may have turned the corner - Are you a believer?

The website ran the story below that makes one want to believe that maybe more than just the job market is improving. Read the article and you be the judge ...

California may finally have turned the corner into recovery, with the job market slated for slow but steady growth over the next two years, according to a report released today by UCLA's Anderson Forecast.

"Have we turned the corner in the Golden State? Perhaps we have," wrote UCLA senior economist Jerry Nickelsburg. "The last two months have yielded both job growth in excess of the U.S. rate and job growth which is widespread throughout the state."

It was the second time in two days that a Southern California think tank has predicted increased job growth in the state. On Tuesday, Chapman University in Orange issued a similar report, predicting slightly higher growth than UCLA. (To see the Union-Tribune's article on the Chapman report, click HERE.)

The UCLA report notes that since July, job growth throughout each major region of California has outpaced the national average. San Diego County, Orange County and Ventura grew at an average rate of 2 percent, compared to the U.S. average of 1 percent.

"In coastal California export and technology growth has been the key to recovery," Nickelsburg wrote. "A resurgence of investment and exports in 2012 will continue to drive the coastal economies."

On the other hand, the forecast warns that the U.S. and international outlook is so weak that it is doubtful that the growth will be robust enough to chop down the unemployment rate anytime soon, especially in the Inland Empire and the Sacramento region. As a result, the unemployment rate will likely not dip below 10 percent until late 2013 or early 2014, and it could be 2016 before it returns to pre-recession levels.

And partly because of the continuing problems in the job market, the report projects that the downturn in the housing market will continue, with no dramatic growth in home construction - a key growth engine for the inland areas of the state - until 2013.

"The end of a recession does not mean 'recovered from a recession,'" Nickelsburg wrote. "It only means the contraction has ended. The pain remains real and persistent until solid and sustained gains occur."
After reading the story you should have an opinion. While the article only referenced one specific region in California (Coastal) it mentioned the driving force in gains there but no mention of the other state regions. This might tend to make one attribute the recent employment gains to seasonal hiring however only time will awnser that.

Tuesday, December 6, 2011

Freddie's New Loan Modification Option

Freddie has a new rogram "Standard Modification" This program is for borrowers ineligible for a HAMP modification or may have defaulted on a HAMP or toher modification.

The program is designed to reduce one's mortgage princiapl AND monthly payments by at least 10% each ensuring the [ayments are more affordable.

How do you qualify? Are you 60 days late (past due) or prove you are in imminent danger of default, demonstrate an eligible hardship and provide verification of income. If you tried to modifiy previously you know the requirements: paystubs, bank statements, etc...

Best of Luck!!!

Foreclosure's impact on our heath

Recently a study by economists discovered that an increase in foreclosures may be associated with increases in medical visits. Reasearchers at Princeton and Gerogia State universities focused on Arizona, Florida, New Jersey and California - some of the states hardest hit by the foreclosure crisis.

They found that an increase in the number of foreclosure was associated to increases in medicals visits for anxiety and suicide attempts, hypertension and a broad array of stress-related physical complaints. Within the 20-49 age group, an increase of 100 foreclosures corresponded to a 7.2% increse in emergency room visits, 8.1 increase in diabetes realtes visits, 12% more anxiety realted vists and 39% more suicide attempts.

The researchers were clear to point out that foreclosures aren't necessarily teh direct cause of health problems, that stress could be linked to financial troubles preceding the los of a home.