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December's Existing Home Sales from the National Association of Realtors. It showed an unexpected increase of 6.5% in the number of home resales last month, but it also indicated that home prices continue to fall.

December's Leading Economic Indicators (LEI) was also posted this morning, revealing an increase of 0.3% in the index. This means that the indicators are pointing towards an increase in economic activity over the next three to six months.

More lenders allow “early workout” loan alterations

Borrowers with loans owned by Fannie Mae no longer have to be behind in payments in order to qualify for a loan modification. Borrowers facing financial difficulty, such as losing a source of income, now can apply for an “early workout” loan alteration. Under Fannie Mae’s program, borrowers who qualify will enter into a trial period of reduced payments, usually for four months. If the reduced payments are made on time each month during the trial period, the modified mortgage terms may become permanent.

To read the full story, please click here:

http://www.latimes.com/business/la-fi-harney21-2008dec21,0,5965944.story

Revising loan modifications

As many as 53 percent of modified loans redefaulted within the first six months of the year, leading some critics to believe the initial modified loan payment was unaffordable for the majority of homeowners. Prior to agreeing to a mortgage modification, homeowners should create a realistic budget to determine how much they can afford each month for a mortgage payment. To help create a budget, consumers can visit the Internal Revenue Service’s Web site, www.irs.gov, and enter “collection financial standards” into the search box. The search will direct consumers to pages offering guidelines of what they can reasonably expect to pay for food, clothing, housekeeping supplies, out-of-pocket health care, utilities and transportation.

To read the full story, please click here:

http://www.nytimes.com/2008/12/21/realestate/21mort.html?_r=1&ref=realestate