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Beware of Uncle’s bearing gifts. Especially when it is Uncle Sam.

December 30, 2010 By Leave a Comment

In my previous post, It’s not a double dip.  It’s just the continuation of the housing slide,  I discussed how we are being led to believe that there is a double dip in the housing market, when it is actually a continuation that looks like a double dip.  This was brought about largely because of the $8,000 tax credit Uncle Sam made available to help first time home buyers. 

This made me think through what will become of those homeowners who thought this was a good deal for them.  What does their home owning future look like for them.  Was the  “free money” incentive worth it or not?  In light of the new reports showing that housing values dropped 1.3% in October, I thought I would follow this out to see where it went. 

Everybody knows that if you bought a house in 2006 or 2007, the chances that you owe more on your house than it is worth is overwhelming.  Back then, most buyers were doing 100% financing but even if you made a 20% down payment you are upside down. 

But what if you or a friend or even your kids, took the $8K bait earlier this year and bought a house.  Where would you be today?

Let’s say you bought your house in April of this year for $200,000 using an FHA loan because of the low down payment and easier qualifying requirements.   

If the buyer put the FHA minimum 3.5% down, they would have had to come up with $7,000 for the down payment.  That makes the base loan amount $193,000, but on an FHA loan, they would have had to pay an upfront fee of 1.5% which is added to the total loan.  On a $200,000 FHA purchase the actual amount the borrower would owe on this house at closing is $195,895. 

The total house payment on this loan with estimated taxes and insurance and an interest rate at 5% would be about $1,350.00 per month.  Based on the area and location, this same house would probably rent for $1,000 to $1,100 per month.

Current housing value figures show that house has already dropped in value by over 3%.  That means that a buyer who closed on their new home in April, made their first payment in June was already upside down almost $2,000 by Christmas.  Remember, they invested $7,000 and got $8,000 back in the tax credit.  In real cash they are up $1,000 so far but on paper and into the future their outcome is much different.

We expect housing prices to drop another 20% or more with a continued fall until 2014.  Based on our research, we believe this house will ultimately sell for $160,000 or less in 2014.  We expect stagnant housing prices for 3 years after that and moderate growth of 2-5% per year for the next several years.  

This means that this new homeowner who is already upside down in their home will be not be able to sell this house for what they owe on it until at least 2018.  The costs to sell that house could extend this for an additional year or two. 

This optimistic homeowner will have to keep and continue to pay for the property for at least 8 years just to break even.  On top of that, they needed a big chunk of money upfront to buy the house, they are paying more than they could have to rent a similar property and they are responsible for the ongoing maintenance of the property. 

I had to think this through because it goes against everything we have ever been taught about the American dream of home ownership.  For many people who bought their first home, it may end up being a bad dream.  Many of them will be joining the over 16 million american families that are underwater in their homes with no way out. 

You need to understand the math when buying a home in today’s market.  Just because you are buying a short sale or a foreclosure, doesn’t mean that you are getting that house for a bargain.  Whatever you paid for your house becomes the comparable property that an appraiser is going to use for future sales.  If three people get a steal of a deal in the same neighborhood at about the same time.  That now becomes the actual value of all of the similar houses in that neighborhood. 

Was the $8,000 tax credit the saving grace for the housing market?  

Clearly no, it just slowed down rate that housing prices are falling. 

Was it a good deal for everyone who participated in it? 

We believe that many will look back on it as the gift from an Uncle that brought their financial house down.

Filed Under: Economy, Housing, My Personal Finance, The Legal Side Tagged With: , , , , , , , , , , , , , , , , , , , , , , ,

It’s not a double dip. It’s just a continuation of the housing slide.

December 29, 2010 By 1 Comment

Yesterday there was a slew of articles about the newly released report that housing values continue to drop.  No surprise here.

CNN Money’s article stated the double dip has arrived.  It is not really a double dip, in actuality what happened is that the government slowed the slide of home values with their $8000 tax credit earlier this year.  The incentive bunched a group of buyers into the market at the same time putting the law of supply and demand into effect.

Housing is no more complicated than any other commodity where the law of supply and demand is concerned.  If you add a whole bunch of buyers of a certain commodity into any market, the price goes up.  In this case housing prices got a minuscule bump funded by billions of dollars in federal taxpayer money borrowed from China.  I am digressing here.

We are not experiencing a double dip in the housing market.  The housing market is simply continuing it’s slide after a short yet expensive  interruption from Uncle Sam. 

Please make sure your seat belts are securely fastened and your tray tables are in their upright and locked position.  The crash is continuing and you need to prepare yourself. 

For the full CNN Money article, please consider HOME PRICE PLUNGE IS WIDESPREAD.

 

Filed Under: Banks, Economy, Housing, My Personal Finance Tagged With: , , , , , , , , , , , , , , , , , , , ,

Home Values Drop Again. Analysts surprised. Really?

December 29, 2010 By Leave a Comment

Housing values dropped again around the country and the news is that analysts are surprised.  Are you kidding me.  This caught them off guard because they told us that the recession ended in the summer of 2009 and the housing recovery was underway.  The article was in the Wall Street Journal.  CLICK HERE for the printed article.  Below is the video from WSJ’s News Hub.

If these people (surprised analysts) are being honest in their evaluations and they can’t read the signs in the housing market, then how do they get to be analysts?  They predict what they are paid to predict, that’s how.

If you have been to any of our workshops on the collapse of the housing market and what you can do to protect yourself, you know that we talk about “THEY”.  They is that group, I’m not sure I even know who “they” are.  The group that is pulling the strings to seperate you from whatever money you have left.  Is it the banks, the government, wall street, the media or some clandestine group that secretly want to control the universe?  The truth is I don’t know so I will just stick with “THEY”, you fill in the blank. 

THEY have been running this campaign to deny and delay the general public into not doing anything.  This manipulation is to keep you paying on an investment that could wipe you out.  If we believe that the collapse of the housing market is “over” or “almost over” or “recovering” or “getting better”, then we will stick it out. 

I believe that people are inherently smart.  If we get good information we will make good decisions.  The government through legislation, continues to try to force businesses to give us accurate information.  It doesn’t work because “THEY” often write the legislation and if not, they find loopholes. 

So what would you do if  “THEY” told you the truth?  

 YOUR HOUSE WILL DROP AT LEAST ANOTHER 20% BEFORE IT BOTTOMS OUT.

There are lots of options.  All I am saying is that you should be given accurate information, then you can decide for yourself what is best for you and your financial future. 

Here is the video about the surprised analysts.

Filed Under: Banks, Economy, Housing, My Personal Finance Tagged With: , , , , , , , , , , , , , , , , , , , , , ,

The Old Mis-Direction Play

December 20, 2010 By 1 Comment

Folks, I don’t know about you, but it quite apparent to us at Financial Revival Group, that at least once a day there is a print article or news story designed specifically to fake us out.

First case in point: Foreclosure filings declined in November.
On the surface (if all you did was browse the headline) you would be thinking, hey, there’s hope here after all. Things are getting better. I can understand wanting to think that way, but the overwhelming quantity of information doesn’t support this thought process.

Start with the obvious, which is the qualifying statement for the assumption in the article:

“Nationally, filings fell 21 percent, thanks to a seasonal trend and delays stemming from questions about the legality of some proposed seizures, the Associated Press reported.”

Wait a minute here, so what you are really saying is that there really were two underlying causes here. First, the seasonal trends (aka the Holiday’s), and secondly because there was a freeze on foreclosure proceedings by the major banks. That’s what really caused the declining foreclosures for November and NOT the fact the banks have in anyway altered their attitude or their intent on ripping away as many homes from folks as they can legally or otherwise. 

If you need more supporting facts, take a look at this story: Seattle-area home price drops among nation’s biggest.

It is well known that Seattle has lagged behind the rest of the country with regard to the housing collapse. I am sure we can thank a few of the local “Mega-Corporations” for our good fortune. That have been said, all signs point to the fact it’s now our turn.

We are continuing to see the weakness in home prices without artificial government support in the form of tax credits,” CoreLogic Chief Economist Mark Fleming said in a news release. “The stubborn unemployment levels and seasonality are also coming into play. When you combine these factors with high shadow and visible inventories, the prospect for a housing recovery in early 2011 is fading.

What I find most interesting about this quoted statement is the government has already made it crystal clear that we aren’t going to have any type of recovery prior to the end of 2011. See this post: Now it’s another year of falling housing prices! . What is even more interesting is the fact that the vast majority of Americans believe that timeline is overly optimistic. See this story:   58% believe housing will not recover until AFTER 2012.

As consumers, we are sick and tired of being sick and tired. We feel that we are being taken advantage of at every turn, and are desperately looking for someone to advocate for us. Someone, anyone, who will help us stand up and take control. Here is the kicker, fewer and fewer of us feel that our government is going to fulfill that role, and even fewer of us believe the banks are going to change their ways.

Then, to help us believe again, you see stories like this. Arizona, Nevada sue Bank of America over loan modifications.  Please don’t misunderstand what I am trying to convey here; I am all for the government finally going out and holding these damn bank accountable.  However, in my experience, the renumeration that does take place (if any) – never ends up in the hands of the consumers.  The attorney’s do very well, then the federal, state, and local governments.  We (as consumers) don’t get squat!

I am certainly aware that there is a lot of doom and gloom out there. The most important thing to remember is that there is a solution. It’s not a solution that you are going to get from your local attorney, and certainly not your bank. If you have come to the conclusion that the best solution for you (and your family) is to consider giving your house back – you owe it to yourself to give us a call. There is a light at the end of the tunnel, and this one is NOT the oncoming train.

Filed Under: Banks, Economy, Housing, My Personal Finance, The Legal Side Tagged With: , , , , , , , , , , , , , , , , , , , , , , ,

Core Logic says fewer homes are underwater. Here is the story behind the story.

December 13, 2010 By 1 Comment

Core Logic released a statement today touting the drop in the number of mortgages that are underwater in America.  Here is the statement:

Core Logic out this morning saying the number of U.S. homes worth less than the debt owed on them dropped in the third quarter,largely because of mounting foreclosures rather than a rise in property values. 10.8 million homes, or 22.5% of those with mortgages, were “underwater” as of Sept. 30, the Santa Ana, California-based real estate information company said in a report today. That was down from 11 million, or 23%, at the end of June, the third straight quarterly decline. Falling property values and unemployment near 10% have spurred a surge in foreclosures. The number of homes offered in foreclosure auctions averaged 110,000 a month in the third quarter compared with about 98,000 in the same period a year earlier, said Mark Fleming, Core Logic’s chief economist. “There are two ways to reduce negative equity,” Fleming said in a telephone interview today. “Price appreciation or disposition, which means people getting taken out of their homes. At the moment, there’s more disposition.” A further decline in prices threatens to increase the number of homeowners with negative equity, Fleming said. U.S. home values will probably drop $1.7 trillion this year after rising foreclosures and the expiration of buyer tax credits that boosted demand early in the year, Zillow Inc. said Dec. 9. More than $1 trillion of the drop came in the second half, according to Zillow, a Seattle-based real estate data company. (Bloomberg)

Here is the story behind the story.

First, most all of the information that is released (we research information like this from hundreds of sources) is designed to keep homeowners “holding on” for another few months.  “They” don’t want a wholesale rush of people who understand that it makes more sense to give your underwater property back than to keep it.  We have been asking the question, ”What will happen first, your house value will come back or your credit will heal?” 

1. Based on the Core Logic statistics, 1/2 of on percent of the 70 million homes in America with a mortgage on them are not underwater anymore.  That means that 350,000 people who were underwater last quarter are not underwater now.  At this pace, it will only take 11 years for everyone to work out of this mess.  So much for holding on a few more months.

2.  They go on to say that the main reason for this drop in underwater homeowners is that the properties have been foreclosed on.  The banks foreclosed on 330,000 homes that same quarter.  These people are not underwater only because the banks now have these properties. That means that the the banks are taking these losses, not the individuals.  The individuals give the house back and most are off the hook except for the dings on their credit.  Take a look at our previous post to see how the banks are dealing with this.  Banks Believe Your Credit Will Heal Faster Too!  We have been predicting the wholesale rebuilding of the credit scoring system. 

3.  The article concludes with a prediction from Zillow that housing values will drop $1.7 Trillion in 2011.  They only dropped $1 Trillion in 2010.  Most people don’t have any idea what that means for them personally.  If you do the raw math, it means your house will drop another $15,000 this year.  Add to that the 10-12% it costs to sell your house and you will have an idea of whether you are underwater or not.  

Robert Kiyasaki, the author of Rich Dad, Poor Dad and dozens of other books has long said that your house is not an asset.  It is a liability.  Most of us did not believe that because our houses were going up in value so fast during the good years.  Now we all understand what he meant.  You have to look at your house like a business would.  Make the decisions based on money, not emotion.  If you do, you will understand why we say, GIVE IT BACK.  Let the bank take the loss and get on with your life.  There is life after bad credit and if you do it right, the banks can’t touch you.

Tell us your story below.  We need to change the discussion in this country.  It is public knowledge when a business reorganizes or files for bankruptcy and we still do business with them.  Do you drive a GM car or have you flown on an airline that is in bankruptcy?  Most of us can say yes to one of those.  But we as individuals have been conditioned to believe that we are failures if we give back a house or file for bankruptcy.  There is much more coming in this collapse.  Protect yourself and your family.

Filed Under: Economy, Housing, My Personal Finance Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,

Banks Believe Your Credit Will Heal Faster Too!

December 13, 2010 By 7 Comments

Here is another situation that Financial Revival Group has been speaking to on a regular basis in our workshops – and with our members about, which is credit.

This is a GREAT article from Eric Dash, of the New York Times: Risky borrowers find credit again, at a price. Here is a prime example of what we at Financial Revival Group have been saying all along.

New categories of borrowers One is “strategic defaulters,” whose credit scores were damaged because they walked away from a home when its value dropped below what was owed on the mortgage. These borrowers made a bad bet on real estate but may otherwise be prudent risks because they make a good living.

Similarly, “first-time defaulters” once had a strong credit record but ran into financial trouble during the recession. Typically, these borrowers fell behind on some sort of loan payment after losing a job, not from taking on too much debt.

Folks, we have been saying all along that when clearly ½ of the country no longer qualifies for credit, they were going to have to modify (or get rid of) the system currently in place for granting credit. Well, here is one of the first steps.

The goal is to weed out the latter groups to identify consumers whose credit scores are blemished but who still have the money to pay their bills.

You always hear us asking: “What is going to happen first, your house value will rise to equal the balance you owe on it, or your credit will heal.” It would seem that banks are betting your credit is going to heal faster as well.

Filed Under: Banks, Economy, Housing, Life After Foreclosure, My Credit, My Personal Finance Tagged With: , , , , , , , , , ,

Yeah, We Can All Relate…..

December 13, 2010 By Leave a Comment

86-year Old Lady’s Letter to Bank

Shown below, is an actual letter that was sent to a bank by an 86 year old woman.

The bank manager thought it amusing enough to have it published in the New York Times.
________________________________________

Dear Sir:

I am writing to thank you for bouncing my check with which I endeavored to pay my plumber last month.

By my calculations, three nanoseconds must have elapsed between his presenting the check and the arrival in my account of the funds needed to honor it.

I refer, of course, to the automatic monthly deposit of my entire pension, an arrangement which, I admit, has been in place for only eight years.

You are to be commended for seizing that brief window of opportunity, and also for debiting my account $30 by way of penalty for the inconvenience caused to your bank.

My thankfulness springs from the manner in which this incident has caused me to rethink my errant financial ways. I noticed that whereas I personally answer your telephone calls and letters, — when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become.

From now on, I, like you, choose only to deal with a flesh-and-blood person. My mortgage and loan repayments will therefore and hereafter no longer be automatic, but will arrive at your bank, by check, addressed personally and confidentially to an employee at your bank whom you must nominate.

Be aware that it is an OFFENSE under the Postal Act for any other person to open such an envelope. Please find attached an Application Contact which I require your chosen employee to complete.

I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative. Please note that all copies of his or her medical history must be countersigned by a Notary Public, and the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof.

In due course, at MY convenience, I will issue your employee with a PIN number which he/she must quote in dealings with me.
I regret that it cannot be shorter than 28 digits but, again, I have modeled it on the number of button presses required of me to access my account balance on your phone bank service. As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further.

When you call me, press buttons as follows:

IMMEDIATELY AFTER DIALLING, PRESS THE STAR (*) BUTTON FOR ENGLISH

#1. To make an appointment to see me

#2. To query a missing payment.

#3. To transfer the call to my living room in case I am there.

#4 To transfer the call to my bedroom in case I am sleeping

#5. To transfer the call to my toilet in case I am attending to nature.

#6. To transfer the call to my mobile phone if I am not at home

#7. To leave a message on my computer, a password to access my computer is required.
Password will be communicated to you at a later date to that Authorized Contact mentioned earlier.

#8. To return to the main menu and to listen to options 1 through 7.

#9. To make a general complaint or inquiry.
The contact will then be put on hold, pending the attention of my automated answering service.

#10. This is a second reminder to press* for English.
While this may, on occasion, involve a lengthy wait, uplifting music will play for the duration of the call.

Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement.
May I wish you a happy, if ever so slightly less prosperous New Year?

Your Humble Client

And remember: Don’t make old People mad.
We don’t like being old in the first place, so it doesn’t take much to piss us off.

Filed Under: Banks, Economy, Housing, My Personal Finance Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,

Real Estate Section of the Sunday Seattle Times. Six real estate articles. All Point to the fact that we are not done yet!

December 12, 2010 By 7 Comments

I picked up the Sunday edition of the Seattle Times today to look through the real estate section.  During the week, about the only part of the local paper I read is the letters to the Editor.  On the weekends, I like to look at the real estate section to see the media’s interpretation of the events and the markets that I follow all week.

This week, there were six articles pertaining to real estate.  None of the articles were written by local reporters.  They were all stories written for the national market and picked up by the Times.  There are hundreds of articles written each week that the Times (and any newspaper for that matter) can choose to fill their local edition.  This is important because this real estate section could appear anywhere in the country. 

Let’s take a look:

Legal homeowners caught up in foreclosure mess. 

Michelle Conlin – The Associated Press

In addition to the intimidation and outright fraud the banks are using to take homes through the foreclosure process, this is the story of Christopher Marconi who had foreclosure documents posted on his house.  The problem is, those documents had his name on them but they were for a house he had never seen, much less owned and on a mortgage never had.  

Can you imagine how hard it would be to convince any large bank that they have made a mistake?  This type of situation is much more common than you think.  These types of debilitating mistakes are happening with every major bank all over the country.  Each one of these mistakes require homeowners to spend hours working their way up the ladder of the banks automated systems then finally getting to a live person in India or some other part of the world.   Most of these victimized homeowners are further victimized by having to lawyers at their own expense and then have to go to court to fix the problem and try to recover those lawyer fees.

This speaks to the ongoing problems the banks (in this case, GMAC) have with their own paperwork processes.  Not only have the banks created a system where they don’t have the proof of ownership of these loans, their loan modification programs are dismal failures and now they are going after properties they have no legal right to. 

The banks have foreclosed on just over  4 million homes.  The projections are that the final figure will be 14-16 million.  We are going to hear many, many more of these horror stories unless congress makes them clean up their systems. 

Housing nominee is grilled

Joseph A. Smith testifies before the Senate Banking Committee

Barbara Barrett – McClatchy Newspapers

President Obama nominated Joseph A Smith Jr. to be the Director of the Federal Housing Finance Agency.  He would be running Fannie Mae and Freddie Mac.  A failed Government Sponsored Entity (GSE) who has already received over $150 Billion and has us  on the hook for over $2 Trillion.

The story here is not about Mr. Smith, his credentials or what he plans to do.  The story is politics.  He has to be confirmed by the full Senate and it has to be done before the end of they year.  If his confirmation goes into 2011, Mr. Obama will have to re-nominate him.  So what does the Senate Banking Committee do?  They asked him a bunch of “tough” questions and then required him to respond in writing. 

The committee was specifically interested in whether Mr. Smith would, “Resist pressure from the Obama administration to have Fannie and Freddie write down the principal on some troubled mortgages — a move that could help individual homeowners but would cost taxpayers.”  

The message here is what we have been telling you.  You are not going to get any help on your underwater mortgage.  You are expected to pay the loss that the banks, wall street and yes, Fannie and Freddie caused in the first place. 

Troubling times for condo owners

Kenneth R. Harney – Syndicated Columnist

FHA has required that condo projects must be re-certified in order for the units in those projects to be eligible for FHA loans.  This is critical for condo owners who want to sell or refinance their property.  FHA has provided extensions on the re-certification process but over 2,200 condo projects around the country have yet to complete this time consuming and possible costly process.  This comes at a time when many condo associations around the country are having a hard time just collecting the association dues. 

The story here speaks to the problem that is brewing in every association around the country.   This is just another nail in the coffin of condos nationwide.  We are not surprised by this as you can read in our post on October 11th Condo Owners Beware… Most condos will be foreclosed. 

Bank of America saw opportunity in Countrywide but bought a load of trouble

Steven Mufson – The Washington Post

This is a full page story about the mess that B of A got when they paid $4 Billion for Countrywide. 

Here are a couple of quotes from the article:

“Bank of America has set aside billions of dollars more to clean up Countywide’s mortgage mess…”  This is money B of A can’t use to help you with your underwater mortgage.

“Countrywide was a garbage bin. Said Richard Bove a banking analyst with Rochdale Securities.” 

“The bank has 1.3 million customers more than 60 days delinquent; 195,000 haven’t paid in 2 years.  Of those 56,000 are vacant.”

“… it has modified 725,000 mortgages since January of 2008.”   B of A has 14 million loans.  That means that they have modified 5.1%.  Pathetic.

Here is my personal favorite.  “Over the course of the crisis, we as an industry caused a lot of damage… And it has been clear how poor business judgments we have made have affected Main Street.” As we have been saying.  The banks caused this and we are expected to pay the bill.

We believe that Bank of America is in much deeper trouble than they are admitting publicly and ultimately could cause the collapse of B of A and begin the fall of other major banks. 

FTC cracking down on for-profit foreclosure-rescue operations

Inman News

The loan modification process is an almost impossible maze for homeowners to navigate.  The average loan modification takes over a year to complete and often times you have to submit the same paperwork multiple times because the bank loses them or the documents need to be updated. 

There are companies out there who help borrowers through this process and in truth many of them are not worth a dime.  The problem stems from the fact that only 3.7% of people actually get a loan modification.  Even those companies that are very good at working with the banks to do loan modifications are not successful most of the time. 

Now the FTC has ruled that these loan modification companies cannot collect any money unless you get a loan modification that you are happy with.  In essence, these companies will have to work with you and for you for a year without getting paid.  They will only get paid if the banks provide you with a solution that you are happy with.  The banks are not providing loan modifications that people are happy with.

This ruling will force you to go to a HUD approved counseling agency.  A list of these agencies can be found on our website.  These agencies have a single goal. To eliminate or change whatever they have to in your financial life to keep you paying your mortgage regardless whether it is in your best interest or not.

The bottom line.  This is another example that you are on your own.

Home values to shed $1.7 trillion in 2010, Zillow predicts

Amy Hoak – Marketwatch

This is a recap of information Zillow put out on Friday.  The original Zillow report that the US real estate will lose another $1.7 Trillion in value in 2010 after losing $1 Trillion in 2009.  So what does that mean for you and your property? 

I didn’t like these statistics when I read the original report.  Most of us want to know how this affects me.  From the way the statistics were put out, the only thing we learn is that we lost more money on our real estate this year than last but based on these numbers, we can’t quantify it.

The story behind the stories here are that the housing market will not correct any time soon.  The media is having a much tougher time spinning or hiding this fact.   We have been predicting that the bottom of the housing market will be in 2014.  Knowing this information in advance will give you the data you need to make the best decisions for you.  The media has been stringing us out for a couple of years now trying to keep us paying by telling us that we are almost there.  We aren’t.

Filed Under: Economy, Housing, My Personal Finance Tagged With: , , , , , , , , , , , , , , , ,

Don’t worry, the COP is digging deep into the foreclosure issue

December 10, 2010 By Leave a Comment

In our previous post, we showed you a video of the Congressional Oversight Panel (COP) report released almost two years ago.  We commented that NOTHING is being done to help the underwater homeowner. 

Here is the latest report from that panel released November 15, 2010.  That is 20 months.  But don’t worry because the panel “…has spent weeks digging deep into this issue”

Take a look and tell me if you still believe that you should keep paying on your house…

A solution is not coming any time soon.  You are on your own and your house will lose at least another 20% in value.  We predict that it will take at least five years for your house to be worth what it is today.  It could be 10-12 years before it is worth what you owe on it today.

Filed Under: Banks, Economy, Housing, The Legal Side Tagged With: , , , , , , , , , , , , , , , ,

Foreclosure crisis, we can’t fix this ourselves. Those that can, have done next to nothing.

December 9, 2010 By 3 Comments

I stumbled across a video released by the Congressional Oversight Panel on March 6th of 2009.  The report is entitled “Foreclosure Crisis, Working toward a solution”.  In the video we see Elizabeth Warren, the Chairwoman of the panel discussion the problems and some conclusions the panel has reached. 

This report came out almost two years ago and the questions raised here are still unanswered, have not been acted upon and workable solutions have not been put into place.  In the past two years, the value of properties in America have dropped another 20% and the number of foreclosures have continued to climb at unprecedented rates. 

Take a look at this video.  If you think like I do, you must be wondering, What the heck has congress been doing for the past two years?  Oh, that’s right Obamacare and trying to get re-elected. 

When it comes to your underwater home, You are on your own.  You are not going to get a loan modification that will make any real difference.  The bank is not going to lower what you owe.  The government is not going to step up and do anything.  They are doing whatever they can to protect the banks.  They don’t give a rip about us.

Those that give their houses back now, will provide their own toxic asset relief program.  They will save 10′s of thousands of dollars over the next few years and will be poised to cash in when they can buy that same house back for pennies on the dollar after the bottom of the housing market hits in 2014.

Filed Under: Housing, My Personal Finance, The Legal Side Tagged With: , , , , , , , , , , , , , ,
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