Archives for September 2008

Dire Straits on Main Street

By Mike Colpitts Editor It finally hit the fan. The nation's largest investment banks and mortgage companies developed the new financial trading instruments that triggered the credit crisis on Wall Street, and now the long expected financial melt down has finally entered its final stages. A few minutes before the New York Stock Exchange closed for trading at 4 p.m. last Friday afternoon we walked the most famous street in finance – Wall … [Read more...]

Desperation in New York City

By Mike Colpitts Desperate times cause people to do desperate things. We encountered one of these unfortunate souls on our trip last week to New York City, Marina Berkovich is an insurance agent in Brooklyn,  who owns the apartment we rented. She said business has been lousy with the ailing real estate market. Marina was nice enough to meet the two of us at her office in Brooklyn and give us a ride to the apartment in Staten Island. the city … [Read more...]

Open Letter to U.S. Congress

America is at a cross roads. The U.S. economy has suffered major damages as a result of the nation's mortgage crisis. Housing prices have fallen in the majority of local markets from coast to coast at unprecedented speed. Financial markets have sustained huge swings in erratic fashion. The nation is in turmoil. As you consider options to resolve the crisis, we ask that you freeze home mortgage foreclosures immediately. We suggest you freeze … [Read more...]

New World of Mortgage Lending

By Cathy Salustri Three years ago it seemed anyone could get 100% financing on a half-million dollar home and lenders had a mortgage product for every situation. Today the lending pendulum has swung the other way and lenders are getting back to basics with more conventional mortgages. Lenders say they're protecting their interests and keeping their companies from going out of business by offering traditional mortgages. With most subprime … [Read more...]

Reality Behind Fannie and Freddie Bailout

By Mike Colpitts Editor The reality behind the Fannie Mae and Freddie Mac bailout will amount not only to the largest single economic cost in U.S. history on the home front, but it will mark a monumental struggle for Congress to clean up the worst political financial mess in history at a cost to tax payers that will easily topple $200-billion. The government's seizure of the nation's two largest mortgage finance giants takes America down a … [Read more...]

Rent to Own Options on the Rise

Finding homes that can be rented with an option to buy are under going a re-birth as the nation's real estate markets realize an extended slump in the majority of housing markets. The Rent-to-Own purchase is making a big come back. Gone are the days of booming real estate markets experiencing double digit inflation. Gone too are the days of easily obtainable home mortgages, pushing many homeowners to settle for a renter at least at first, who … [Read more...]

Economic Depression Not Forecast for U.S.

The U.S. economy will not suffer from an overall economic depression as a result of the real estate depression, according to a new forecast by Housing Predictor. The majority of the nation's housing markets are under going deflation as a result of the credit crisis, but analysts now expect the housing depression to begin showing signs of improvement towards the middle of next year. The Housing Predictor forecast is based on a wide ranging … [Read more...]