Even as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust — California, Arizona and Florida — stabilized in June, offering hope that the worst of the real estate crisis is over.

Owners of shopping malls, hotels and offices are defaulting on their loans at an alarming rate, and the commercial real estate market is not expected to hit bottom for three more years, industry experts warned yesterday. “The commercial real estate time bomb is ticking,“ said Rep. Carolyn B. Maloney, D-N.Y., who heads the congressional Joint Economic Committee.

Goochland County will begin assessing its real estate annually after this year’s biennial results shocked many residents who saw an increase in their assessed values. The Board of Supervisors on Tuesday night unanimously approved the change, which could mean a loss of $2.34 million in county revenue next year. It also could mean higher real estate taxes in coming years.

After five years living in the Richmond area, Jessica Fulbright has decided the time is right to become a homeowner. “I don’t plan on leaving Richmond anytime soon,“ said Fulbright, a 28-year-old restaurant general manager who has been renting for years but started house-hunting just a few weeks ago, motivated by what seems to be a good market for first-time buyers.

Sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of a housing recovery are fragile at best. The National Association of Realtors said yesterday that existing-home sales rose 2.4 percent to a seasonally adjusted annual pace of 4.77 million, up from a downwardly revised rate of 4.66 million in April. But the result missed analysts’ expectations.

Anyone interested in the speculative real estate market should take heed. Know your borrower, and know your collateral, said Lem Marshall, counsel for the Virginia Association of Realtors. “You want to be confident about the credit worthiness of your borrowers—that they have the income and assets and ability to repay the loan,“ Marshall said.

Most residential properties are sold free and clear of liens. Institutional lenders, such as banks, require lender’s title insurance to ensure that no one else has a claim on the property. Homebuyers are advised to get title insurance coverage, but it is optional, said S. Page Allen, chairwoman-elect of the real estate section of the Richmond Bar Association.

Richmond real estate investor, Allan Mullian discusses one of the homes he invested in and describes the home’s condition.

Prospect Homes of Richmond Inc., a large homebuilder that filed for bankruptcy protection last week, fell victim to the ailing housing industry and the liquidity crises facing the nation. The entire mortgage market froze last year, the president of the company said in papers filed with the U.S. Bankruptcy Court in Richmond. “After several years of growing revenues and record profits, the residential homebuilding industry took a severe downward turn in 2007, which continues through today,“ Joseph R. Audi said in a sworn statement.

LAURA LAFAYETTE Metro Business asked Laura Lafayette, the chief executive officer of the Richmond Association of Realtors, about the real estate market in the Richmond area: “The real estate market has been challenging for a while now in the Richmond metropolitan area. The first quarter of this year was pretty tough. “But we are starting to see things pick up. That’s usually what happens in the spring, and we are glad to see that the spring is doing what it always does—and that is seeing an uptick in the real estate market. “We will continue to have kind of a bumpy ride for the remainder of 2009. “The good news is that homes are selling, and if you price the house right and your house is in excellent condition, it will sell.“ Watch the interview with Laura Lafayette on TimesDispatch.com. Keyword: Metro Business

NEW YORK The real estate market’s troubles are hitting close to home for Treasury Secretary Timothy Geithner. After reducing the price on his house in a tony New York City suburb to less than he paid for it, Geithner still couldn’t sell it. He has recently rented it out instead, according to real estate agents familiar with the deal. Geithner put his five-bedroom Tudor near Larchmont on the market for $1.635 million in February, after heading to Washington for his job as the nation’s top economic official.

Ginter Place Associates, a Richmond development company, is in bankruptcy. Don’t confuse it with the Ginter Place condominium project, though, which is doing just fine. The entities sit next door to each other off Westwood Avenue in Richmond’s North Side. “There is a misperception out there about Ginter Place condos and Ginter Place Associates,“ said Ted Ukrop, a co-owner of an investment group that owns the condo project in the former Richmond Memorial Hospital building. The two entities are owned separately, Ukrop said.

Federal and state officials are cracking down on mortgage modification scams, accusing “criminal actors” of preying on desperate borrowers caught up in the nation’s housing crisis. Government officials said yesterday that scammers are seeking to take advantage of borrowers in danger of default by charging them upfront fees of $1,000 to $3,000 for help with loan modifications that rarely, if ever, pay off.

Passengers on six GRTC Transit System buses traveled through Richmond-area neighborhoods yesterday afternoon looking at examples of high-quality, low-cost housing. On the tours were about 120 people learning about types of affordable housing that nonprofit organizations help make available in the city. The passengers were a mix of those wanting to learn about ways to help with various projects and those in need of affordable housing.

More than 300 new upscale apartment units could be built along the South Market Street corridor in the next five years with hopes of establishing a vibrant residential community downtown.