In fact, in her 2012 outlook piece, she says it's "far from over" and that prices still have another 7% to decline nationally.

The basic problem: There are still tons more foreclosures or "liquidations" yet to come.

"The most crucial input to our forecast for construction and home prices is our assumption for foreclosures. We estimate another eight million homes will be liquidated over the next four years, which adds to the six million homes that have already been liquidated since 2007. All told, we expect 14 million foreclosures or a quarter of all homeowners with a mortgage."

Buyers turning to alternative forms of funding Dec 23, 2011

Faced with finicky lenders, would-be home buyers are increasingly turning to Dad, Grandma, rich relatives, or even perfect strangers they met online. While these solutions are understandable, given the abundant bargains on the market, they also present significant risks.

This year, one-third of first-time home buyers received a cash gift or a loan for a down payment from family or friends, according to the National Association of Realtors. That is up from a historical average of 27%.

Meanwhile, so-called peer-to-peer lending sites Prosper and Lending Club say demand for home-related financing is on the rise. And Weemba, a social-networking site, launched a platform in September to connect lenders directly with prospective home buyers and other borrowers. Driving the demand, say financial advisers, is that despite rock-bottom mortgage rates around 4%, traditional lenders remain reluctant to provide mortgages to anyone with less than stellar credit. And in certain markets lenders are requiring down payments of more than 20% of the home's purchase price.

Scott Nguyen, a human-resources analyst, was denied a mortgage by several banks before getting a $15,000 loan from his mother and sister to use as a down payment on a home in Costa Mesa, Calif. Mr. Nguyen says he has agreed to pay off the loan on a monthly basis over three years, and will end up paying $3,000 in interest.

"Without my mom and my sister's help, I don't think I would have been able to buy the house that I did," he says.

In so-called intrafamily loans, the borrower often saves on interest since parents are likely to charge less than the banks, says Michael Garry, a fee-only financial planner in Newtown, Pa. And parent lenders can earn a higher return from their child's interest payments than they would on a certificate of deposit or money-market fund. Under federal law, on a loan of more than nine years, parents in most cases must charge at least roughly 2.8%.

Of course, intrafamily loans can upset the family dynamic.

Jonathan Bergman, a certified financial planner at Palisades Hudson Financial Group in Scarsdale, N.Y., recommends that parents be clear about how repayment will work. In some cases, it may even make sense to hold back on future monetary gifts or inheritance if it isn't repaid. "The power of the parents' purse is strong," he says.

Consumers who want to look beyond the family can apply at online sites like Lending Club and Prosper. If approved for a loan after a screening by the companies, applicants may then receive money from investors.

At Miami-based Weemba, some 3,000 registered users have started posting loan proposals during the past couple months. Thirty companies including banks and credit unions [up from just a dozen in September] review the applicants and directly contact those they are interested in.

However, these alternative routes to financing can be expensive for borrowers. Rates at Lending Club run from around 7% to 28%, and at Prosper from roughly 7% to 35%. The companies say these rates, which are fixed, are higher than traditional mortgage rates in part because their loans are unsecured.

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Selected previous news updates

Credit report web-site? One I recommend. July 4, 2011

One of the many facets of my business is property management and landlording, and of course this means talking to prospective tenants about credit reports. I've helped many of them by advising them to look for the "real" site that best provides this, not one of the commercial sites that tries to sell them other products or services as a means to get their report.

So it occured to me to link this site since it explains this topic in more detail, and in this way I can help prospective tenants get off on the right foot when it comes to obtaining their credit report.

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Get e-mail updates of the newest listings

Through this site you can search the MLS (Multiple Listing Service) and get automatic e-mail updates whenever a new home comes on the market that meets your criteria.

Why search manually if your time is at a premium? Let the technology do it for you.

Use "client log-in" to change a search, create a new search, or eliminate a current search.

Helpful note: After entering your e-mail address, please check your e-mail account for the confirmation number that allows you to complete your registration and begin creating your search and update requirements.

If you have any questions about your search, contact Robert via phone or e-mail.

Your feedback is always welcome and will assist in providing the most useful and continually improving system.

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Useful Links

Community & City Links
Official city sites
School Info
TIP To find out the schools pertaining to a particular Santa Clara county house address, follow this procedure:
1. Get the APN [property tax] number of the listing, located on the info sheet provided by my home search system (see this page)
2. Go to Santa Clara county records search page, enter APN number to get school district
3. Go to http://www.sccoe.k12.ca.us/resourcesfamilies or click "Santa Clara county schools" below and click on "school district website links"
4. School district website should have search to identify school, based on street address
5. When school is known, from this site click "Cal academic performance API" below
6. You are taken to Cal Dept of Education API Reports page. You did it!
Find nearest schools
California academic performance index (API)
California school ratings
Santa Clara County Schools
San Mateo County Schools
Santa Clara Co Property Tax Issues
Assessor's Office (408) 808-7900
go to site and click on "forms" for mailing address changes
Real Property Division (408) 299-5300
transfering tax base: press option 6
Check property taxes paid or due with option to pay online, or here
Monterey Co Property Tax Issues
Monterey County Tax Collector home page
Monterey County Tax Collector tax bill check
Over 55 Tax Relief
How it works
Library Systems
Santa Clara County Library
San Mateo County Library
Convention & Visitors Bureau Sites
SanJose.org
SantaClara.org
Quick Contacts & Reference
Bed size dimensions
UPS 1-800-742-5877
Fed Ex (800) 463-3339
Spring cleaning?
    Toxic clean-up Santa Clara Co.: call (408) 299-7300
    Toxic clean-up San Mateo Co.: call (650) 363-4718
Other Links
My social tennis page

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Robert Kunzler, Associate Broker
SRES, Realtor
DRE Broker Lic. 01434427

Fireside Realty
2111 Lincoln Ave., San Jose, CA 95125

My direct line: (408) 777-0907 Mobile line: (408) 777-0907 click to e-mail Robert Kunzler

Member of: National Association of Realtors California Association of Realtors Silicon Valley Association of Realtors

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In accepting employment as an agent, the Realtor pledges himself to protect and promote the interest of the client. This obligation of absolute fidelity to the client's interests is primary...."

-- excerpted from the Code of Ethics, National Association of Realtors

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