Considering buying a foreclosure or a short sale in the Mt. Hood area? There's a lot going on with robo-signers, recent court rulings and bank decisions. Recent news articles declare housing has just hit the "D" word, Depression level, in loss of values for the fourth year in a row. That's right, a loss of 26% since June 2006 nationally.

A recent court rulling in Massachusetsmay be good news for homeowners facing foreclosure. Did the banks have the legal authority to foreclose on homes and have all the legal paperwork in order? Robo-signing and loan servicers are under major scrutiny as to if the banks had the legal right to foreclose and did that bank actually own that mortgage.

Major banks, Freddie Mac (the largest underwriter of loans right now, all are reporting that the first half of 2011 will see further price declines. Numbers are anywhere from nearly 4% to 8% nationally. These are the same people who control the flow of foreclosures into the market place. Be aware that as these foreclosures hit the market they will increase the supply therefore depress prices a bit further.

Short sales may increase in 2011 as banks find out the foreclosure action may not be as easy or attractive this year. Many companies that insure these loans (mortgage insurance companies) covered the bank losses through foreclosures but since there is so many questions about the legalities that applications were fraudulent, banks may not get that insurance paid so short sales will look more attractive as an option.

Despite potentially a further price decline in the market, interest rates may tend to move upwards this year. The "cost" of buying a home is still excellent right now. It's a great time to lock in the monthly payment that you can afford!