Housing prices continue to fall as everyone searches for the bottom. There has been record decreases in housing prices according to Standard & Poors.Case -Shiller Index of home prices in 20 metro areas was down nearly 20%. In Orange and Los Angeles Counties prices were down 27%. Although there is no clear sign of the bottom one would think that it has to be near.

Dave Brown a home builder from Tempe, Arizona has found himself in trouble with the bank, but not for typical reasons. He had not missed a single payments on his loans, but recently the bank concerned with the drop in revenue suddenly demanded millions of dollars in additional collateral.

Dave has been unable to keep up with the new monetary request the bank has required of him and he now has had five of his developments foreclosed on, and his business of 33 years has been forced to close. Desperate times call for desperate measures for the banks.

The bailout had big promises for the economy and part of the promise was that by placing the first chunk of money into the banks, the bank in turn would be able to give out new loans, and stimulate the economy. So far the banks have not held up their end of the deal. It seems as though the banks need a push in the right, and a little more oversight.

Online bank ING Direct forgave five hundred January mortgage payments for homeowners who won an essay contest. The 500 mortgage payments amounted to about $860,000.

The winners do not include any of the 250 homeowners who are now in foreclosure through ING Direct, but those who just recently fell behind and had a compelling essay.

ING Direct’s spokesman said that the gesture was paid partly by employees who gave up their annual office party.

In Canberra, Australia a couple was served with an eviction notice via Facebook, an online networking site.

The Australia Capital Territory Supreme Court approved a request last Friday made by lawyer Mark McCormack to use Facebook to serve legally binding documents after failed attempts to contact the couple at their house or by email.

The couples Facebook profiles dissappeared from public view more then likely due to the publicity of the court order.

According to the National Association of Realtors the housing market fared better than expected. There wasn’t a gain in the market, but it didn’t decline as far as some had projected. Financial analyst thought there would be a a 3% drop, although only a slight improvement, it is encouraging in such a shakey market.

The housing market is finding itself in a more stable spot not partly because there are so many bargains to be had. For example a condo in South Florida is on the market for $64,000, this is only $1,000 more than it was originally sold for back in 1984.

Federal Chief Ben Bernanke is requesting that the Government makes serious attempts to address the housing crisis and lower the number of foreclosures.

Bernanke says that both the private and public sector have made a good effort to assist homeowners, but it just isn’t enough. He said he would like for the Government to make improvements to their program “Hope for Homeowners.” He said they could start by lowering the interest rate from its current 8 percent.

As the housing market continues to crumble, and our country comes to grips with a recession, it becomes more clear that something needs to be done. Bernanke says, “loan modification will often be needed to create sustainable mortgaged and keep people in their homes.”

Over the weekend 2,000 homeowners attended Home Preservation Day in Van Nuys, California which was a workshop of sorts for homeowners. All of the homeowners in attendance were in one away or another having troubles with their mortgage. Homeowners were given a chance to speak with a loan counselor, and find out if they qualified for a loan modification.

Many were turned away as the bankers had only anticipated 200 homeowners showing. Indy Mac Federal Bank, the Federal Insurance Corp, and the Los Angeles Neighborhood Housing Service sent out letters to 4,000 local residence. Those who were turned away were asked to call the bank at a later time. A second Home Preservation Day is planned for December 2 in Riverside, California.

Fannie Mae and Freddie Mac are placing a hold on all foreclosure through the holidays. The freeze will begin on the 26^th of November, one day before the Thanksgiving Holiday and will continue through January 9^th. This break will allow servicers more time to implement a program for homeowners who need a loan modification, and in the mean time allow homeowners to remain in their homes and have a chance to be a part of the program. It sounds like a move they shouold have made back in September, but I suppose its better late than not at all.

Law makers urge Secretary Paulson to help homeowners, as they accuse Paulson of being unclear about his goals regarding the bailout, and not having a so called “exit strategy.” Secretary Paulson recently announced that he was no longer going to purchase bad mortgages, but move to credit card companies and student loan issuers. This move has lawmakers very upset as they say that, “clearly, part of this was not just to stabalize but to reduce foreclosures, for good economic reasons.”

Sheila Bair has also warned that if the government does not take additional actions that there will be about 45 million foreclosures, which could end up costing the government and the economy much more then they are ready for. So, Secretary Paulson, don’t forget about the homeowners.