If its just the increase in interest rate that''s going to cause more forclosures and this economic collapse to spiral out of control, why wouldn''t the lenders or the government just freeze or lower the intersest rates? I would love if someone could explain this to me.
If you''re going to fix a problem, it''s best to start with a clear understanding of the root cause. In the case of the current economic crisis, the root is the political motivation of both the Democrats and the Republicans to promote home ownership regardless of the risks. Both Clinton and Bush adminsistrations have created rules based on Carter''s anti-redlining statute (Community Reinvestment Act) that encouraged and even forced banks to make bad loans. Unscrupulous investment bankers, appraisers, mortgage brokers and their ilk colluded by creating the irresponsible investment vehicles that are thought by many, including CBS News, to be the root cause of the problem. But make no mistake about it. These investment vehicles were created only because of political pressure to increase home ownership. Robert Rubin, Arthur Levitt, and Lawrence Summers quashed efforts to apply regulation to these vehicles in 1999 because they would hamper Clinton''s political goals of increasing home ownership. Bush adopted the same policy under his "Ownership Society" and further restricted common sense regulation of irresponsible investments. Blaming this mess solely on Wall Street is fatuous. Blame Congress, the past two administrations and unscrupulous investors. Yet some how people expect Congress, who was complicit in all this, to fix the mess. Heaven help us!
This is all caused by greed and lack of oversight. The real estate industry, car industry and finacial industry must finally see that they have hurt everyone including themselves. However during this credit crunch it''s still possible to sell your home quickly and at top dollar. For more info http://www.ezhomeassist.com
Two important questions remain unanswered: 1) Who currently "owns" these Alt-A and ARMs mortgages, and 2) have our "forward thinking" stock markets really factored these defaults into its pricing? If this renewed default revelation is "news" to most people, then the market has yet to reflect this. I believe that we''re going to see another wave of losses in the equity markets.
The subprime mess was exacerbated by credit default swaps, which were sold 10 to 1 over the underlying securitized debt. My understanding was the credit default swaps was what really made the markets fall.
Are these alt-a''s and ARM''S also securitized, and are there credit default swaps sold for them as well?
With expenses rising, one thing we can do it shave costs where ever we can. I literally just saved $730 on my home insurance and $870 on my auto insurance, although I do have 3 cars, at www.ensurance.com I just wish I could shop for a new mortgage payment that easily. I too have an option-arm that''s about to jack up on me. I can''t refi because values have dropped so bad there''s no equity left and my neighbors are all doing short sales. Anyone got suggestions for someone who doesn''t want to walk away from his obligation? They said when they gave me this loan that I WOULD DEFINITELY need to refi in 3 yrs when it starts to adjust, but now my hands are tied. Ideas anyone?
With expenses rising, one thing we can do it shave costs where ever we can. I literally just saved $730 on my home insurance and $870 on my auto insurance, although I do have 3 cars, at www.ensurance.com I just wish I could shop for a new mortgage payment that easily. I too have an option-arm that''s about to jack up on me. I can''t refi because values have dropped so bad there''s no equity left and my neighbors are all doing short sales. Anyone got suggestions for someone who doesn''t want to walk away from his obligation? They said when they gave me this loan that I WOULD DEFINATELY need to refi in 3 yrs when it starts to adjust, but now my hands are tied. Ideas anyone?
With expenses rising, one thing we can do it shave costs where ever we can. I literally just saved $730 on my home insurance and $870 on my auto insurance, although I do have 3 cars, at www.ensurance.com I just wish I could shop for a new mortgage payment that easily. I too have an option-arm that''s about to jack up on me. I can''t refi because values have dropped so bad there''s no equity left and my neighbors are all doing short sales. Anyone got suggestions for someone who doesn''t want to walk away from his obligation? They said when they gave me this loan that I WOULD DEFINATELY need to refi in 3 yrs when it starts to adjust, but now my hands are tied. Ideas anyone?
I think the government should go to the lenders and tell them point blank FROM THIS DAY FORWARD HERE IS HOW IT IS GOING TO GO;
Your greed (the lender) has led to a near collapse of the housing industry. Since you approved these people for these ARM''s knowing full well they should have never gotten these loans in the first place you ARE now going to accept a FIXED mortgage rate. CASE CLOSED. DISCUSSION OVER.
Well done! As more and more Americans will lose their homes during this economic crisis, a new industry has emerged consisting of individuals who clean up a house after a foreclosure. REO ServicePro provides this service and we are expanding our coverage areas.
For sub-contracting opportunities or starting your own business, please respond to fieldagent@reo-servicepro.com with your availability and service areas. Visit http://reo-servicepro.homestead.com/resources.html to learn more.
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http://www.ezhomeassist.com
Are these alt-a''s and ARM''S also securitized, and are there credit default swaps sold for them as well?
Your greed (the lender) has led to a near collapse of the housing industry. Since you approved these people for these ARM''s knowing full well they should have never gotten these loans in the first place you ARE now going to accept a FIXED mortgage rate. CASE CLOSED. DISCUSSION OVER.
For sub-contracting opportunities or starting your own business, please respond to fieldagent@reo-servicepro.com with your availability and service areas. Visit http://reo-servicepro.homestead.com/resources.html to learn more.