Negative equity is reported today to have occurred in almost 30 percent of homes purchased in the last five years and 45 percent in homes bought in the last two years.
The Housing Economic Recovery Act of 2008 became law today and I am sad to say it will offer no help to consumers, home owners, or foreclosure victims. As with most political solutions to economic events, the new law has more bark than bite.
Home values are the biggest indicator as to when we can say the foreclosure crisis and mortgage crunch will soon be over. Once home values stabilize lenders, investors, and home owners can all breathe a collective sigh of relief…and that day may soon be here!
Finally I am getting some support for my long standing prediction the GSE’s, Fannie Mae and Freddie Mac, are on the verge of collapse. Tuesday the New York Time publish an article which I believe is the first from a major news outlet to even raise the question of the GSE’s long term viability.
The article stated the worries by saying,
ResMAE, a large stated income lender, announced a year ago the discontinuation of all their stated income loan programs used for self-employed borrowers. Since then virtually all sources of loans for the self-employed are all gone.
The National Association of Realtors (NAR) Chief Economist, Lawrence Yun, was recently listed by USA Today as one of the experts to listen to when it comes to the housing market. After his most recent ridiculous statements after the largest slide in home prices since the Great Depression, I beg to differ.
The housing crash currently in it’s infancy will soon grow up into an economy killing monster that the Federal Reserve has no weapon strong enough to defeat. A housing crash is unlike a stock market crash in that there is no easy way out.
Let’s take a walk back in time to the tech stock crash just 8 years ago and compare it to a housing crash.
I have a bit of mortgage refinance advice that will sound so obviously beneficial, and yet it is rarely followed. Before that, let me ask you a few questions about your last mortgage refinance.
“Did you only look at lowering your payment as the primary determining factor as to whether the refinance was “beneficial” to you?
When it comes to house selling tips, the best advice I can give is on how to find a good real estate agent. Most house selling tips come from self-serving listing agents. Mine do not.
I wrote an extensive article on how NOT to choose an agent a year or so ago. I thought I’d revisit the topic from a positive perspective rather than the negative…and just hit the big points!
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