Archives for May 2008

Banking Trickery Exposed

By Tony Evans Years ago in a movie about the oil industry titled "The Formula" I recall a classic line. George C. Scott and Marlon Brando starred in the movie. Brando’s character ran an oil trading business. As Scott was leaving Brando's office, he turned and said, "You're not in the oil business. You're in the oil shortage business." It got me thinking about how banks are in the "appraisal pricing" business. The following is Howard's real … [Read more...]

American Dream of Home Ownership Turning Sour

By David Wilkening With residential real estate showing record declines, is the long established American dream of owning a large single-family home a dying concept? Experts from coast to coast say there are signs the dream is at least threatened. The American dream of home ownership has turned sour for many. The evidence is everywhere in the decline of single-family homes. Last year, in many areas of the country, building permits for … [Read more...]

Anemic Foreclosure Plan Fails Homeowners

By Mike Colpitts Editor The housing rescue bill signed into law by President Barack Obama lacks the scale and budget to deal with the growing foreclosure epidemic. The plan has been watered down by special interests, members of Congress and provides nothing more than an anemic effort to improve the housing market. At best the effort is a weak move to save as many as 400,000 homeowners from foreclosure through mortgage modifications with … [Read more...]

Credit Card Hustle

By Tony Evans Checked your credit card statement that came in the mail lately? If you're like many credit card holders you haven't unless you've heard the news. Wait a minute. Look closely. Hold it! Let me get my magnifying glass….. Ah…ha…There it is. The rate increase nobody told us about in mice print hidden in a paragraph they hope you'll never read. Clever people these credit card companies. Washington Mutual said it was raising rates … [Read more...]

Lending on Steroids Triggers Bigger Bust

By Mike Colpitts Editor As the nation’s real estate crisis worsens beyond what once seemed unimaginable, a new Housing Predictor analysis shows that the crisis will deflate the value of U.S. homes in the majority of the country between 55 and 70% on average from the markets highest peaks. The amount of deflation depends on what area of the country, and in large part whether the housing market experienced double-digit appreciation during … [Read more...]

Most Affordable Housing Markets

Affordable housing means different things and depends mainly where you live in the country since housing prices vary considerably from one place to another. The markets chosen to be on the Housing Predictor Most Affordable Markets list for 2008 are urban areas that have a greater likelihood of appreciation over the next two years with lower median home prices than the rest of the nation. Driven by falling real estate prices, affordable housing … [Read more...]

Deep Discounts Offered on New Homes

By David Wilkening One of the most common phrases you hear goes like this: "It’s a great time to buy:" (a) a new paved driveway for your house; (b) a new car; (c) a new home. You will certainly be skeptical of the first two answers and also the third. If you hear (c) from an overextended builder of new homes, however, there might be something to it these days at least under certain circumstances. Builders all over the country are … [Read more...]

Getting Back into Home Ownership

Part II By Tony Evans Those of you looking to improve your credit standing to get back in the housing game should be on second base having already mailed your letter to the credit agencies, which will be placed in your file. If you're still sitting on the bench, Coach Buzzz says “You won’t get to home plate if you don’t get off the bench.” For anybody who missed Part One, the Coach gave you an example of a letter that needs to be … [Read more...]

Hedge Funds Buying Mortgages Again

Betting Markets to Hit Bottom By David Wilkening It is sometimes called "opportunity investing," or to put it more bluntly, vulture capital. In a possible sign that the housing market has reached its bottom, hedge funds are circling. This development is somewhat unusual in part because hedge funds have been famous for making many executives rich, and to a large extent are blamed for causing the nation's real estate crisis. The New … [Read more...]

Feeding the Real Estate Frenzy

By Kayce Boulyn Just a couple years ago when real estate sales were "hot" nearly everybody and his brother wanted to get in on the action, many giving up their "day jobs" to start a new path on the road to riches. Feeding the real estate frenzy were a variety of cable TV shows focused on flipping property and infomercials showing how to attain wealth through the purchase of real estate, many produced as "true" rags to riches stories. On … [Read more...]