The S & P Case/Schiller Home Price Index dropped by 9.1 percent at the end of 2007, which represents the largest drop in the index’s 20 year history. The index measures home prices in 20 key market areas throughout the US. Decreasing home prices can make it difficult, if not impossible, to sell a home or refinance home mortgage loans.

Lenders are responding to difficult market conditions by offering loan workout solutions and may also accept market value purchase offers as full satisfaction of home loans in areas experiencing steep declines in home values.

Tags: home values, housing market, housing prices, mortgage lenders

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