Sales figures dropped about 10% in the Seattle-Tacoma-Bellevue metro area in August compared to July of this year.

Worrying is the number of FHA loans being used. With a minimum down of 3.5%, these have a higher default rate than other types of mortgages.

Quoted: Adjustable rate mortgages (ARMs) accounted for 4.8% of the region’s purchase mortgages in August, up from 4.4% in July, while Federal Housing Administration (FHA) loans accounted for 37.6% of all purchase mortgages.

As Robert Shiller says, positive news, but too soon to say that this data means we've reached a turning point in the economy.

Quoted: The Standard & Poor’s (S&P)/Case-Shiller US National Home Price Index showed some positive quarterly improvement, gaining 2.9% in Q209 from Q109. It marks the first quarter-over-quarter improvement in three years

Quoted: After peaking at 75% in July 2008, the net percentage of domestic banks with tightened lending standards for prime residential mortgages fell to roughly 20% in July 2009.

Too many scams and problems for distressed property owners - good for them to visit a state-sponsored, FREE program on the subject.

Unfortunately, real estate agents have to shoulder blame as well. Too many self-serving agents that are ignorant about the process who eventually lead their sellers to foreclosure and bankruptcy, which is exactly what most sellers want to avoid.

The collapse of this behind-the-scenes "banks' bank" could have a big effect. Some of the area's biggest lenders, like WaMu (now Chase) and Bank of America are no longer using FHLB, which will reduce its supply of money. In addition, cuts to programs have affected the bank's loans to developers of affordable housing, as well as to first-time buyer loan programs such as Home$tart.

Quoted: Don't look now, but another big Seattle-based bank is struggling under the weight of distressed mortgage-backed securities, declining loan business and the deflated housing market. This time it's not a consumer-oriented bank such as Washington Mutual, which collapsed last year, but the Federal Home Loan Bank of Seattle, a behind-the scenes funder of mortgage loans that faces its second major financial crisis in five years.

FYI regarding loan modification and what you need to do to get your ppwk in order.

There are just too many scam artists taking advantage of distressed homeowners and buyers too.

No one should ever have to speak with a housing counselor - the HUD and many local non-profits exist for this purpose and don't charge anything.

The government has seriously stepped up enforcement of mortgage fraud, but there's just too much going on to catch them all. This particular brokerage has violated many, many different laws and has been fined tons of money by the government before. 6-months in jail is a small price to pay for predatory and self-seeking nature of this company and its owners.

Quoted: But Robart called her a "predator in her own community" because she ended up permanently damaging the finances of immigrants who got loans they couldn't afford and lost their homes. "I have no doubt that the defendant loves her children." Robart said. "But she didn't think much about them when she was accepting the money that was flowing into Jet City."

I think that the sudden change in interest rates and a busier summer sales season helped to spur more activity in the market.

Quoted: New report provides the strongest evidence yet that buyers are starting to return to the local real-estate market. The number of closed sales of single-family homes in King County in June was up 4 percent over June 2008 — the first year-over-year increase since the market peaked nearly two years ago, the Northwest Multiple Listing Service said Monday. The county hasn't recorded that many sales in a month since October 2007. The statistics also suggest — and agents in the field confirm — that the new buyers aren't just first-timers searching for homes at the lowest end of the price spectrum.