New Jersey real estate is holding up in this current credit market. Certain counties in New Jersey are maintaining prices and some cities are even rising. Bergen county and Hudson County in particular are seeing home prices appreciate according to our survey of appraisers. Red Bank which is a Borough in Monmouth County is still attracting home buyers we are being told. The easy ability to commute from Red Bank to New York City via rail is perhaps one reason why real estate prices are holding up so well in Red Bank. Many of the other cities and suburbs that are within commuting distance to New York City have home prices that are holding strong. So long as the broader economy does not experience a financial shock, New Jersey real estate in certain locations may continue to be a good investment.

                   Fannie Mae unveils the broad sketches of a new loan modification program today in an attempt to stem the cascading effect of mortgage foreclosures nationwide. FHFA Director James B. Lockhart, the regulator of Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE) and the Federal Home Loan Banks, announced a simplified, streamlined loan modification program to help troubled borrowers get affordable monthly payment. The program will start December 15, 2008 and details of the program are still very sketchy. It will be interesting to see whether government pressure will force investors to modify loans at rates below market. Speculation from one news anchor on CNBC opined as to whether rates could be possibly as low as 3% because that would be the only way to make the loans afforable since many home owners may not qualify for the 38% DTI ratio required by the program.  That is, home payment, including homeowner association dues, could be no more than 38 % of the household’s monthly gross income. As such, principal foregiveness may be a secondary measure to allow these borrower’s to qualify.