A word of advice for builders, contractors, developers and all other players interested in re-building strength back into the real estate marketplace: only strong, balanced, and experienced leadership at the executive level will pull the industry through to the next upcycle. According to Bill Ferguson, author of the new book "Keepers of the Castle: Real Estate Executives on Leadership and Management" it is time to rid the industry of the greed and egos that helped contribute to the industry’s downfall and allow the "great leaders in the industry" to get real estate back on its feet. Now, says Ferguson, companies must implement another business strategy–a focus on leadership and building a leadership bench within their companies.

Homeowners who are unable to meet their mortgage obligations and have been turned down for a loan modification may receive some help from the Obama administration. In an effort to get a handle on the foreclosure crisis, the government will encourage borrowers not helped with a loan modification to leave their homes to be sold through a “short sale.”

Properties would be sold for less than the balance of the mortgage and lenders would be paid $1,000 for rubber stamping the process. In addition, loan servicers will be asked to “forgive the difference between the market price of the property and what they are owed,” and borrowers would be assured by their lender that they will not be held legally liable for the unpaid mortgage balance. Should the home have a second mortgage, the government will pay an additional $1,000 to the lender who holds that loan. To aid the homeowner, Uncle Sam will offer a sum of $1,500 as “relocation assistance.”

Here are three pros of this program:

1. Homeowners take less of a hit on their credit rating.
2. Investors owning many of these home loans could receive more money from a short sale than with a foreclosure.
3. Communities and neighborhoods will carry a lighter load of empty foreclosed houses expected to be sold by banks. This cuts down on the likelihood of destruction of property by irate homeowners or vandals, which decreases property values even further.

Be apprised that homeowners will have had to exhaust all other options in order to qualify. “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale,” said J.K. Huey, a Wells Fargo vice president.

This new program, effective April 5, could help simplify the short sale process and make it easier for both borrowers and lenders.

TALK BACK: What do you think of this new program? Will it help struggling homeowners? Post your comments below.

Posted by Sharon Walker

How much is your real estate–your house, condominium unit, cottage, income property–worth in this market?

It may not feel like Spring in your town, but for most of the United States, we’ve turned a corner. The sun is shining, the snow is melting, and the crocuses are poking their heads up through the ground; a brutal winter is winding down.

Despite being just 3 1/2 weeks from the much anticipated end of government purchasing of mortgage-backed securities, mortgage rates remain steady.

If you’re trying to figure out where real estate is headed in the coming months, should you listen to the Federal Reserve — or do you focus on the latest pending home sales numbers?

One of the first steps to take as a potential home buyer is to get pre-qualified for a loan. This step helps both you and your lender learn just how much home you can afford. And you should begin this process before you even start looking for a home.

Download Price Reduction February 2010 Final