They are going to be with us for awhile, but there are government programs trying to slow that and as home prices continue to rise, that will also bring people out from moved here underwater and help prevent more defaults. Lending Practices Long gone are the days of easy lending that allowed prospective homebuyers with bad credit and shaky financials to qualify for a mortgage. These subprime loans carried higher interest rates than normal loans because the lender was taking on more risk. According to reports, close to half of the loans issued in 2006 were subprime, and when the economy took a hit and people started losing their jobs, home prices dropped and homeowners started defaulting en masse.
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UC leases housing at $9,950 a month for president Napolitano
The University of California has leased an Oakland residence for incoming system president Janet Napolitano for $9,950 a month, officials said Monday. Napolitano, the former U.S. secretary of Homeland Security and former governor of Arizona, will be provided the housing plus an annual $570,000 salary, $8,916 a year for car expenses and $142,500 for one-time relocation costs. Napolitano is scheduled to begin her UC presidency Sept. 30, with her office at UC system headquarters in downtown Oakland.
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Four Factors to Watch in Housing’s Rebound
A Zelman report last week showed that new home orders in August rose by just 1% from one year earlier, compared to year-over-year gains of 11% in July and 25% during the second quarter. I hear more often now from builders, We pushed prices too far, she said. Consumers got sticker shock. 2. Inventories are still depressed.
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