Upside Down Mortgage

Archive for August, 2008

Housing Bubble Interest Rates

Question: Why did Bernanke (US FED Bank) keep raising interest rates until ....?

the housing bubble burst?
Bernanke appointed 2/1/06 raised rates until 9/07.

Can /Could any president control the FED?

http://en.wikipedia.org/wiki/Federal_reserve_bank#Structure

Fish or cut bait.

Answer: There was talk about a "soft landing", back then.
He must have been under the impression that we needed to contract the money supply. Clearly he didn't dee that the contraction would need some sector to sustain the economy.
Oops he goofed.

Interest rate cuts will NOT spark housing market

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How Did The Housing Bubble Happen

Question: Did any senate foresee this mortage mess?

The government must have been aware about this housing bubble in advance but did they do anything to alarm investors or stop speculation?

I bet that they did nothing because they're all cowards. They know that any intervention will cause that bubble burst instantly and those senates will lose votes. Right?

If the crisis had happened earlier, it might have been not so hurt as now. Right?

Let's talk about economic bubbles - are they all caused by over-speculation? Should we issue a prohibition whenever we perceive that a bubble is forming?
Dear Barry L, I think the US'd better to forestall this mess or let it happens earlier instead of prevent foreclosures in such a fuss.

Moreover, I think that the US is retarding+prolonging this crisis: Where do money for "stimulus plan" come from? - It's our increasing debt!

Let forecloses happen - houses must return to its original value!

Answer: History is full of bubbles forming and breaking causing economic distress. There are always people who see the problem coming but most just join in.Just before the market crash in 2001 someone wrote a book predicting the DOW would go to 30000. Economist don't really understand why it happens or how to prevent the next one, and politicians are more noted for the search for the guilty after the collapse than anticipating problems. The federal reserve and the Treasury dept are the government agencies that are supposed to watch over the financial markets and they did not request any new authority, and in fact have been advocats of deregulation, and the congress has been more than happy to go along since 1980.

Roubini: Worst yet to come

upside down home loan

Question: Mortage questions for upside down loan?

Hi I am upside down on my home mortage
Its worth 110000 and i owe 300000
Is there a prgram to help out

Answer: Yes. Look at modifying your mortgage and renegotiating. HOWEVER, if your neighborhood comps suggest your house is really worth 110k, then don't bother doing this unless you can get the price down to that. No use refinancing to get a 200k loan on a 110k house. It will take another 1-2 years to sort out the remainder of these sub-prime mortgages issued in '06 and '07 that haven't even come up for escalation yet. Expect your house value to drop as much as another 15% over the next 12-18 months before the market levels. Once it levels, it won't bounce back up. There will still be a huge inventory of houses for sale (about double the normal inventory) so you'll have to think in terms of 7-10 years ahead. Otherwise, seriously consider bankruptcy before the laws get changed on that option and you're hung out to dry. Worth 10 points?

Forensic Mortgage Home Loan Auditing - Uncover The Truth