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Housing Headaches

The housing boom created by lower interest rates via the government in trying to spur the economy is turning into a housing bust, for everyone. First it was sub prime borrowers, now it is alt A borrowers.

Click to read about it.  More and more folks that used interest only or Adjustable Rate Mortgages are now regretting getting in at the bottom as their payments rise.  You will recall I noted that Garry Shilling in Forbes predicted a recession had started last December.  The Perfect Storm of a market top is coming together.

Housing market collapse takes lenders and borrowers as well as home builders down

Massive take overs financed by junk debt may eventually a similar fate

Stock Markets round the world down significant percents, weekly trends break down.

Weak poll numbers for President here tempt jihaddists round the world to try bolder adventures.

Mood turns darker evidence by interest in violent sports, gangster movies.

Stay tuned.

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2 responses to “Housing Headaches”

  1. gwadalupebarraza@yahoo.com Avatar
    gwadalupebarraza@yahoo.com

    When I worked with a loan officer I was witness to telephone calls made to appraisers that were sent out to appraise the homes we were refinancing and I noticed how the loan officer would make sure the appraiser knew the amount we were “looking for”. Suffice it to say, I did not last long in that business. I’m sure there are plenty of honest people in the home mortgage business. I just had the opportunity to see a bit of the other side of the spectrum. There are a lot of mortgage programs out there that are beneficial to the buyer, however sometimes in order to make more of a buck the mortgagor does not always work in favor of the mortgagee. This is why a lot of people end up with programs that they cannot afford, which causes them to default on their loans.

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  2. Dennis Elam Avatar
    Dennis Elam

    Good post Lupe, yes it is to everyone’s advantge except the buyer to get the price higher as the mortgage company and particularly the realtors all benefit. This is why the Master of the Appraisal Institute MAI designation is often referred to as
    Made as Instructed

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