It’s a bold move, for a country that’s still clearly reeling from the devastating hit to nearly every real estate market within its borders. And a recent CNN article draws attention to what one U.S. giant is doing to continue to try and curb the seemingly insurmountable number of foreclosures, and help Americans get back on their feet.

Have a read, as it gives some interesting food for thought as to the state (no pun intended) of where the major lenders are at right now. Ultimately, the threat of, “borrowers (being) more likely to walk away if their mortgages are underwater, meaning they owe more than the home is worth,” has prompted the Bank of America to not only re-think it’s damage control strategy, but also try a tactic seemingly unprecedented until this point.

And with, “nearly 25% of borrowers are underwater, according to First American CoreLogic, Bank of America is launching the program to entice more borrowers to participate in its foreclosure prevention efforts and to reduce the chance of re-default.”

Read through the better part of the article and these alarming stats jump out at you:

“The settlement called for Bank of America, which acquired Countrywide in July 2008, to modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide customers.

The bank expects that 45,000 borrowers will qualify to have their loan balances reduced by a total of $3 billion under the program announced Wednesday. It is set to begin in May.”

Again, this may or may not be a surprise to some. But the numbers are still rather shocking.

What about the neighbour who has been dutifully paying his mortgage through all this?

What are your thoughts on this issue? Should the BOA re-think their strategy?

Interesting Globe and Mail article on the back-and-forth between Canadian consumers and residential realtors. The standoff continues, as the Federal Competition Bureau is ready to keep battling realtors on what consumers should and shouldn’t be entitled to when it comes to buying and selling homes.

On the one-hand, realtors say they’re not doing anything to prevent open competition in the market. On the other, consumers are pushing the national competition watchdog to allow for concessions when it comes to what’s paid and what’s included in a residential listing – both by the realtor and by the seller.

Have a read and see what you think.  When the feds do eventually provide a final ruling on this ongoing issue, it will certainly change the real estate business if the judgment caters to the supposed plight of the consumer.

What do you think? Who’s side are you on?

The loonie is once-again flirting with U.S. parity, Calgary’s average home price is up nearly 12% over this time last year, and inflation is on the rise. By now you’re probably aware of just how much your lender has raised their mortgage rate(s) and you’re deciding, ‘to lock-in, or not to lock-in?”

Well take a peek at this recent CTV News article for what you can expect in the near future. It’s been interesting keeping an eye on what’s happening in the Calgary market. A lot of product in the range of, say, between $275,000 – $500,000 has changed hands. Buyers are motivated by current conditions and the threat of mortgage rates, rules and guidelines changing. The market here is relatively busy (read: steady) as spring has sprung and buyers & sellers shake off the cobwebs, and wake-up from the hibernation brought on by the winter doldrums.

Nothing shocking you say? Well – yes and no. Yes, because spring is traditionally a busier time in virtually every market across the country. And no because depending on where you’re buying or selling, seeing double-digit increases (when it comes to average house prices) is almost surreal, considering what Canadians and North Americans just went through during the latter part of 2008 & nearly all of 2009.

Taking this article a bit further, already the talk is centering in more, now, on Canadians that have stretched themselves so thin, by maxing-out their mortgage amounts, that if these rates do keep climbing (based on federal and individual lending tactics) those who are a) not locked in at a low rate b) riding the variable ‘wave’ c) mortgaged to the max, may suddenly find themselves in hot water.

Again, the signs are there. Where exactly will we be in 6 months? 1 year? Time will tell. But…certainly expect inflation, coupled with government changes to the mortgage market and interest rates to greatly influence what you can actually afford. The days of record-low interest rates are now history. And as we progress, I think many of us will be regaling about the days when interest rates were oh, so, low…

What do you think? Send me your two-cents.