ArnoldCountry's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/179420/comments http://seekingalpha.com/article/128835-housing-decline-slowing-wishful-thinking-case-shiller?source=feed#comment-448357 448357 Wed, 01 Apr 2009 15:55:38 -0400 http://seekingalpha.com/article/127196-housing-conversation-needs-a-dose-of-reality?source=feed#comment-435334 435334 Sun, 22 Mar 2009 11:38:28 -0400 http://seekingalpha.com/article/124000-niall-ferguson-dismisses-moral-hazard-of-fixing-housing-mess?source=feed#comment-412975 412975
The greater good of society is to put blame aside and focus on the problem. As much as everyone wants to focus on blame... just remember, your home values continue to plummet because the inventory is getting bigger and fewer buyers. Keep your eye on the problem.]]> Wed, 04 Mar 2009 13:30:57 -0500
The greater good of society is to put blame aside and focus on the problem. As much as everyone wants to focus on blame... just remember, your home values continue to plummet because the inventory is getting bigger and fewer buyers. Keep your eye on the problem.]]> http://seekingalpha.com/article/121871-housing-crisis-is-key-to-economic-recovery?source=feed#comment-398914 398914 Sun, 22 Feb 2009 14:33:13 -0500 http://seekingalpha.com/article/121930-you-want-to-save-the-housing-market-don-t-fight-foreclosures?source=feed#comment-398595 398595
It reminds me of Jack Nicholson in a Few Good Men... you can't handle the truth!

Truth is, they are trying to contain a disaster and try to bring consumers back to buying homes, using credit and buying goods to stave off a collapse.

In my practice, I tell consumers each day that are in an underwater house that they are struggling to pay for of which their lenders offer little to no assistance... what are you fighting for? You can make a home anywhere, home is about people and families, not brick and mortar. If you are hurting watch out for your family first, if you have to walk from the house and rent for cheaper because it is in your families best interest, just do it. The credit hit will be for a few years and when you recover you will be able to buy a similar home in the future for about half what you owe on your current place.

However, you will never hear that kind of advice coming from our government or mainstream media. Instead you hear about personal responsibility. Dont shame these folks, their personal responsibility is to provide for their families, the rest can be cast aside.]]> Sun, 22 Feb 2009 11:36:24 -0500
It reminds me of Jack Nicholson in a Few Good Men... you can't handle the truth!

Truth is, they are trying to contain a disaster and try to bring consumers back to buying homes, using credit and buying goods to stave off a collapse.

In my practice, I tell consumers each day that are in an underwater house that they are struggling to pay for of which their lenders offer little to no assistance... what are you fighting for? You can make a home anywhere, home is about people and families, not brick and mortar. If you are hurting watch out for your family first, if you have to walk from the house and rent for cheaper because it is in your families best interest, just do it. The credit hit will be for a few years and when you recover you will be able to buy a similar home in the future for about half what you owe on your current place.

However, you will never hear that kind of advice coming from our government or mainstream media. Instead you hear about personal responsibility. Dont shame these folks, their personal responsibility is to provide for their families, the rest can be cast aside.]]> http://seekingalpha.com/article/121818-real-estate-apocalypse-now?source=feed#comment-398567 398567

On Feb 21 01:42 PM TKO wrote:

> Your interpretation is compelling at first sight, but I believe you
> are looking at the wrong variables here. When I choose to buy a home,
> I will look at my income level and determine the 'band' of home prices
> I can afford. We all need to live in a home, one way or another,
> and we will most often choose a home that is most desirable out of
> the homes in the 'band' of prices.
>
> The view that homes are investment vehicles are totally wrong. They
> should be viewed more as an alternative to rent, which is an expense.
>
>
> As for a better graph of the real estate picture: static.seekingalpha.co...
>
> I give credit to Tim Iacano for his article: seekingalpha.com/artic...
>
>
> If we take a totally different angle and compare median home prices
> to median household income, and factor in a historically low interest
> rate at this current time, real estate almost seems undervalued.
>
>
> The truth lies somewhere between your interpretation and Tim's interpretation.]]> Sun, 22 Feb 2009 11:22:06 -0500

On Feb 21 01:42 PM TKO wrote:

> Your interpretation is compelling at first sight, but I believe you
> are looking at the wrong variables here. When I choose to buy a home,
> I will look at my income level and determine the 'band' of home prices
> I can afford. We all need to live in a home, one way or another,
> and we will most often choose a home that is most desirable out of
> the homes in the 'band' of prices.
>
> The view that homes are investment vehicles are totally wrong. They
> should be viewed more as an alternative to rent, which is an expense.
>
>
> As for a better graph of the real estate picture: static.seekingalpha.co...
>
> I give credit to Tim Iacano for his article: seekingalpha.com/artic...
>
>
> If we take a totally different angle and compare median home prices
> to median household income, and factor in a historically low interest
> rate at this current time, real estate almost seems undervalued.
>
>
> The truth lies somewhere between your interpretation and Tim's interpretation.]]> http://seekingalpha.com/article/120698-foreclosure-moratoriums-it-s-time-to-get-real?source=feed#comment-390486 390486 Mon, 16 Feb 2009 11:26:37 -0500 http://seekingalpha.com/article/120558-foreclosure-moratorium-list-grows?source=feed#comment-388332 388332
I can't way to see this miracle solution coming from the Obama administration on solving this mortgage/real estate crisis.


On Feb 13 04:42 PM cadoggy wrote:

> I can guarantee you that 'the plan' will be more of the same: Loan
> modifications aimed at reducing interest rates just enough to squeeze
> every penny out of borrowers without pushing them over the edge into
> foreclosure.
>
> The people who receive these modifications will default again within
> 6 months with a 50% probability.
>
> Principal write-downs are the only way to encourage underwater borrowers
> to stick around and it makes sense financially too.
>
> Consider a home that was purchased for $250k with 100% financing
> and it's now worth $150k. If you reduce the principal by $100k you
> bring the loan back to the reality of today's fair market value.
>
>
> On the other hand, keeping the loan amount at $250k but reducing
> the interest rate from 9% to 5% will effectively achieve the same
> net profits for the bank if the borrowers holds the loan for 10 years
> (which is likely these days).
>
> Plug 9% and 5% into any mortgage calculator and you'll see that the
> interest lost in 10 years is $100k.
>
> Why are banks so insistent on never, never writing down principal???
> ]]> Sat, 14 Feb 2009 09:25:09 -0500
I can't way to see this miracle solution coming from the Obama administration on solving this mortgage/real estate crisis.


On Feb 13 04:42 PM cadoggy wrote:

> I can guarantee you that 'the plan' will be more of the same: Loan
> modifications aimed at reducing interest rates just enough to squeeze
> every penny out of borrowers without pushing them over the edge into
> foreclosure.
>
> The people who receive these modifications will default again within
> 6 months with a 50% probability.
>
> Principal write-downs are the only way to encourage underwater borrowers
> to stick around and it makes sense financially too.
>
> Consider a home that was purchased for $250k with 100% financing
> and it's now worth $150k. If you reduce the principal by $100k you
> bring the loan back to the reality of today's fair market value.
>
>
> On the other hand, keeping the loan amount at $250k but reducing
> the interest rate from 9% to 5% will effectively achieve the same
> net profits for the bank if the borrowers holds the loan for 10 years
> (which is likely these days).
>
> Plug 9% and 5% into any mortgage calculator and you'll see that the
> interest lost in 10 years is $100k.
>
> Why are banks so insistent on never, never writing down principal???
> ]]> http://seekingalpha.com/article/118348-the-housing-bubble-isn-t-funny-anymore?source=feed#comment-375386 375386
You may not like it but it is a sound business decision.


On Feb 04 08:44 AM Dr.Jackpot wrote:

> 90 % are paying their mortgage. The rest are deadbeats taking advantage
> of the situation to cop out at taxpayer expense.]]> Wed, 04 Feb 2009 09:48:18 -0500
You may not like it but it is a sound business decision.


On Feb 04 08:44 AM Dr.Jackpot wrote:

> 90 % are paying their mortgage. The rest are deadbeats taking advantage
> of the situation to cop out at taxpayer expense.]]> http://seekingalpha.com/article/116530-existing-home-sales-rebound?source=feed#comment-367969 367969
This is what makes Tim one of my favorite contributors on here. At least in California, lets not lose sight of the wave of foreclosures building due to the slow down required under the legislative changes in July. Also, lets not lose sight of the "shadow inventory" that exists of homes that have been foreclosed on but which have not been placed on the MLS yet. This "shadow inventory" is purposely there to skew numbers. Add those numbers into the inventory numbers and I bet the months of supply would double. I am actually pretty shocked to hear the chief economist of NAR actually use the "D" word (depression) as he has a tendency to act more like Mr. Rogers and declare its a "wonderful day in the neighborhood."
]]> Tue, 27 Jan 2009 15:47:35 -0500
This is what makes Tim one of my favorite contributors on here. At least in California, lets not lose sight of the wave of foreclosures building due to the slow down required under the legislative changes in July. Also, lets not lose sight of the "shadow inventory" that exists of homes that have been foreclosed on but which have not been placed on the MLS yet. This "shadow inventory" is purposely there to skew numbers. Add those numbers into the inventory numbers and I bet the months of supply would double. I am actually pretty shocked to hear the chief economist of NAR actually use the "D" word (depression) as he has a tendency to act more like Mr. Rogers and declare its a "wonderful day in the neighborhood."
]]> http://seekingalpha.com/article/115393-how-far-to-a-housing-bottom?source=feed#comment-360679 360679 Tue, 20 Jan 2009 08:36:48 -0500 http://seekingalpha.com/article/114639-home-prices-may-be-nearing-bottom-bank-equities-to-follow?source=feed#comment-356069 356069

On Jan 14 06:18 PM Rhett wrote:

> Hoover, replacement costs are falling. Lumber, for example, is at
> its lowest price in years.]]> Wed, 14 Jan 2009 18:45:26 -0500

On Jan 14 06:18 PM Rhett wrote:

> Hoover, replacement costs are falling. Lumber, for example, is at
> its lowest price in years.]]> http://seekingalpha.com/article/114639-home-prices-may-be-nearing-bottom-bank-equities-to-follow?source=feed#comment-355752 355752
The only buyers are really investors, this does not make a market. You need mainstream buyers to come forth, but they can't. Unemployment is too high, many of the folks who would buy have lost their homes and have damaged credit, rent is still cheaper than buying, credit requirements are way too stringent and consumer sentiment is running too low. Its like having a great sale and no one is showing up. Which equates into even lower prices in the long run. Its the perfect storm.
]]> Wed, 14 Jan 2009 13:48:40 -0500
The only buyers are really investors, this does not make a market. You need mainstream buyers to come forth, but they can't. Unemployment is too high, many of the folks who would buy have lost their homes and have damaged credit, rent is still cheaper than buying, credit requirements are way too stringent and consumer sentiment is running too low. Its like having a great sale and no one is showing up. Which equates into even lower prices in the long run. Its the perfect storm.
]]> http://seekingalpha.com/article/114046-mortgage-cramdowns-a-disaster-in-the-making?source=feed#comment-351659 351659 Sat, 10 Jan 2009 11:07:14 -0500 http://seekingalpha.com/article/113058-personal-responsibility-and-the-housing-bubble?source=feed#comment-345422 345422
The entire gammit of consumer laws have been put in place because consumers are easy targets. Real Estate and Mortgage documents are way more complex than car documents or many other contracts yet consumer protections are required for those.

Buyer beware is alive and well. The first advice to all consumers based on this type of article is... do not trust anyone in the transaction, they are not protecting you.

Second advice, take all of your documents at a closing, do not sign them, take them home and read them for the several days it will take to understand them.

Third advice, all consumers should be required to take a debt counseling course BEFORE they buy to educate them on the pitfalls of the transaction.

Fourth advice, all consumers should be required to have the transaction reviewed by an independent party to advise them of all the negative aspects of the transaction.

That should get personal responsibility addressed properly and put a halt to this problem. Also will slow down transactions incredibly and more important... cause more than 50% of the transactions to be rejected.

Remember, the golden rule, he who has the gold makes the rules... the rules by real estate folks, mortgage brokers and lenders were bad. Personal responsibility would not be a discussion if they could not get those loans in the first place.]]> Sun, 04 Jan 2009 11:46:26 -0500
The entire gammit of consumer laws have been put in place because consumers are easy targets. Real Estate and Mortgage documents are way more complex than car documents or many other contracts yet consumer protections are required for those.

Buyer beware is alive and well. The first advice to all consumers based on this type of article is... do not trust anyone in the transaction, they are not protecting you.

Second advice, take all of your documents at a closing, do not sign them, take them home and read them for the several days it will take to understand them.

Third advice, all consumers should be required to take a debt counseling course BEFORE they buy to educate them on the pitfalls of the transaction.

Fourth advice, all consumers should be required to have the transaction reviewed by an independent party to advise them of all the negative aspects of the transaction.

That should get personal responsibility addressed properly and put a halt to this problem. Also will slow down transactions incredibly and more important... cause more than 50% of the transactions to be rejected.

Remember, the golden rule, he who has the gold makes the rules... the rules by real estate folks, mortgage brokers and lenders were bad. Personal responsibility would not be a discussion if they could not get those loans in the first place.]]> http://seekingalpha.com/article/112851-lenders-loan-modifications-and-coming-cram-downs?source=feed#comment-344548 344548 Fri, 02 Jan 2009 17:47:29 -0500 http://seekingalpha.com/article/112807-solving-the-housing-crisis-in-bankruptcy-court?source=feed#comment-343519 343519
Lender risk is above that. However, this is not a normal market.

I find it pretty funny how everyone seems to come around and blame the homeowner. While it is true, the lender is expecting them to perform. More important, they control the evaluation of that risk. They took huge risks in doing piggy back loans to 100% loan to value and they knew that risk. Now that the risk has bit them, they want to cry foul. Blame the homeowner???? This was so predictable and preventable by the lenders.

There is a risky industry called hard money. They lend to folks in foreclosure, bankruptcy or with impossible credit scores. Traditionally, a very very business but they would only lend to 70% or 75% LTV max. They practically went out of business the last 10 years because banks were making loans that they would never make. High LTV with high credit risk borrowers.

Once the banks became so aggressive that they surpassed the bottom feeders, they were the bottom feeders. The best rule in lending is to allways have enough room in your lending so someone else can take you out when trouble comes. I am sorry, but their lending practices had no room and now they lose.

We should not bail them out, let them take their losses.



On Jan 01 12:09 PM Augustus wrote:

> The proposal will destroy the low downpayment mortgage, at least
> in the private market. Consider that every 95% loan is under water
> at closing due to the Real Estate commission going in and out. The
> lenders make the loans because the homeowners are supposed to be
> responsible and make the payments. When making the payments become
> optional, the downpayments will go up dramatically. 25% down may
> not be enough to get the job done.
>
> When there is foreclosure the home buyer has lost it all. Whatever
> equity they thought they had. And they have to move to something
> they can afford to pay for when renting. It is a valuable learning
> experience for them and for their neighbors.
>
> The lesson that the "cram down" will teach is that it is OK to screw
> the person who trusted you to pay back a loan. That will have very
> bad consequences.]]> Thu, 01 Jan 2009 13:44:26 -0500
Lender risk is above that. However, this is not a normal market.

I find it pretty funny how everyone seems to come around and blame the homeowner. While it is true, the lender is expecting them to perform. More important, they control the evaluation of that risk. They took huge risks in doing piggy back loans to 100% loan to value and they knew that risk. Now that the risk has bit them, they want to cry foul. Blame the homeowner???? This was so predictable and preventable by the lenders.

There is a risky industry called hard money. They lend to folks in foreclosure, bankruptcy or with impossible credit scores. Traditionally, a very very business but they would only lend to 70% or 75% LTV max. They practically went out of business the last 10 years because banks were making loans that they would never make. High LTV with high credit risk borrowers.

Once the banks became so aggressive that they surpassed the bottom feeders, they were the bottom feeders. The best rule in lending is to allways have enough room in your lending so someone else can take you out when trouble comes. I am sorry, but their lending practices had no room and now they lose.

We should not bail them out, let them take their losses.



On Jan 01 12:09 PM Augustus wrote:

> The proposal will destroy the low downpayment mortgage, at least
> in the private market. Consider that every 95% loan is under water
> at closing due to the Real Estate commission going in and out. The
> lenders make the loans because the homeowners are supposed to be
> responsible and make the payments. When making the payments become
> optional, the downpayments will go up dramatically. 25% down may
> not be enough to get the job done.
>
> When there is foreclosure the home buyer has lost it all. Whatever
> equity they thought they had. And they have to move to something
> they can afford to pay for when renting. It is a valuable learning
> experience for them and for their neighbors.
>
> The lesson that the "cram down" will teach is that it is OK to screw
> the person who trusted you to pay back a loan. That will have very
> bad consequences.]]> http://seekingalpha.com/article/112851-lenders-loan-modifications-and-coming-cram-downs?source=feed#comment-342970 342970

On Dec 31 05:28 PM Can'tSpotABubble? wrote:

> This scenario is part of the problem. When will people understand
> that a contract is a contract. The lender and borrower have specific
> remedies to all contingencies stated in the contract. They may not
> be pleasant remedies, but they are spelled out in the contract at
> the time of inception nonetheless.
>
> If America chooses to go against over 230 years of contract law precedent,
> the long term ramifications are very detrimental to the future of
> this country.
> ]]> Wed, 31 Dec 2008 18:24:30 -0500

On Dec 31 05:28 PM Can'tSpotABubble? wrote:

> This scenario is part of the problem. When will people understand
> that a contract is a contract. The lender and borrower have specific
> remedies to all contingencies stated in the contract. They may not
> be pleasant remedies, but they are spelled out in the contract at
> the time of inception nonetheless.
>
> If America chooses to go against over 230 years of contract law precedent,
> the long term ramifications are very detrimental to the future of
> this country.
> ]]> http://seekingalpha.com/article/112807-solving-the-housing-crisis-in-bankruptcy-court?source=feed#comment-342965 342965
This is done in Chapter 11 bankruptcies all the time.


On Dec 31 04:53 PM mallarde wrote:

> Another giveaway to speculators at the expense of responsible Americans.
> Those that sat on the sidelines will be forced to pay higher interest
> rates due to the new uncertainty lenders must face.
>
> And why should someone in bankruptcy be permitted to stay in a mansion
> they could never afford? I hope this never happens.]]> Wed, 31 Dec 2008 18:13:05 -0500
This is done in Chapter 11 bankruptcies all the time.


On Dec 31 04:53 PM mallarde wrote:

> Another giveaway to speculators at the expense of responsible Americans.
> Those that sat on the sidelines will be forced to pay higher interest
> rates due to the new uncertainty lenders must face.
>
> And why should someone in bankruptcy be permitted to stay in a mansion
> they could never afford? I hope this never happens.]]> http://seekingalpha.com/article/112807-solving-the-housing-crisis-in-bankruptcy-court?source=feed#comment-342494 342494
I think the judges getting the authority will provide just the incentive lenders need to properly modify loans. It will have the effect of curtailing foreclosures, reducing the inventory of homes, and getting this housing mess back onto the road of recovery.

Will there be some big losses, you bet, but they already took place, on paper. Rates will not go through the roof, instead, they will provide stable loan products with qualifying borrowers who will give stability to a marketplace that has performed extremely well for decades instead of hybrid products and liar loans which tanked the market in just a few short years.

This does not even require a taxpayer bailout, it passes on the loss to where it belongs, the lender who controlled the gold and the rules. Yes, borrowers are wrong too but none of those loans would have ever been available unless the rules had been changed, which the borrower had no control over the rules.

As republican as I am... this democrat proposal for once is actually right on the money. ]]> Wed, 31 Dec 2008 10:38:49 -0500
I think the judges getting the authority will provide just the incentive lenders need to properly modify loans. It will have the effect of curtailing foreclosures, reducing the inventory of homes, and getting this housing mess back onto the road of recovery.

Will there be some big losses, you bet, but they already took place, on paper. Rates will not go through the roof, instead, they will provide stable loan products with qualifying borrowers who will give stability to a marketplace that has performed extremely well for decades instead of hybrid products and liar loans which tanked the market in just a few short years.

This does not even require a taxpayer bailout, it passes on the loss to where it belongs, the lender who controlled the gold and the rules. Yes, borrowers are wrong too but none of those loans would have ever been available unless the rules had been changed, which the borrower had no control over the rules.

As republican as I am... this democrat proposal for once is actually right on the money. ]]> http://seekingalpha.com/article/111761-sacramento-heart-of-foreclosure-activity-hits-holiday-slow-down?source=feed#comment-336062 336062
"We saw it when it appeared on the MLS on a Thursday night, looked at it on Friday, and put in our bid (full asking price of $284,900) on Monday. Bank asked for “best and final on Tuesday as there were three other competing bids on Wednesday and we upped the bid by $12,000. The house sold for $354,000 cash"

I see this as engaging in an unfair business practice in violtion of B&P 17200. They are entering into a listing that says if the real estate agent brings a willing buyer on the terms listed, the broker earns a commission. In fact, they are purposely low balling the price and no matter who is the highest bidder, rejecting all offers and soliciting new offers. Dont all of these buyers know they are in control of the market and they are being played with illegal activity??? You cannot offer a price that you have no intent on honoring. It is an unfair business practice, plain and simple. Buyers... if more of you walked from this ridiculous approach to further screwing the public, the practice would stop. Real estate agents who assist lenders in doing so should be ashamed. ]]> Mon, 22 Dec 2008 16:19:51 -0500
"We saw it when it appeared on the MLS on a Thursday night, looked at it on Friday, and put in our bid (full asking price of $284,900) on Monday. Bank asked for “best and final on Tuesday as there were three other competing bids on Wednesday and we upped the bid by $12,000. The house sold for $354,000 cash"

I see this as engaging in an unfair business practice in violtion of B&P 17200. They are entering into a listing that says if the real estate agent brings a willing buyer on the terms listed, the broker earns a commission. In fact, they are purposely low balling the price and no matter who is the highest bidder, rejecting all offers and soliciting new offers. Dont all of these buyers know they are in control of the market and they are being played with illegal activity??? You cannot offer a price that you have no intent on honoring. It is an unfair business practice, plain and simple. Buyers... if more of you walked from this ridiculous approach to further screwing the public, the practice would stop. Real estate agents who assist lenders in doing so should be ashamed. ]]> http://seekingalpha.com/article/109863-mortgage-modifications-don-t-necessarily-offer-relief?source=feed#comment-325496 325496 Wed, 10 Dec 2008 10:33:22 -0500 http://seekingalpha.com/article/109850-time-for-the-american-government-and-people-to-confront-reality?source=feed#comment-324801 324801 Tue, 09 Dec 2008 13:28:17 -0500 http://seekingalpha.com/article/108486-loan-delinquency-data-suggest-we-re-nowhere-near-a-great-depression-ii?source=feed#comment-318594 318594
Today it was announced that we have been in a rescession since Dec. 07...

More focus on softening the landing is necessary... telling us that a depression is not hear just does not mean much.]]> Tue, 02 Dec 2008 01:10:34 -0500
Today it was announced that we have been in a rescession since Dec. 07...

More focus on softening the landing is necessary... telling us that a depression is not hear just does not mean much.]]> http://seekingalpha.com/article/105728-how-to-solve-the-excess-supply-in-housing?source=feed#comment-306712 306712
Well, the risks of investment are clear. However, homeowners should never consider buying their home an investment. (I have never agreed with the real estate industry that promoted such trash). Being a homeonwer is providing for a basic human need... shelter. A human need that we will have until death.

So, while no question investors will be hurt by promoting homeownership in the short run, in the long run they will do fine as they will be able to sell their investment at a profit when the market stabilizes and property values increase. But as a matter of public policy, investments are risky and homeownership is stabilizing. It makes no sense to make investments risk less and homeownership more risky.]]> Sat, 15 Nov 2008 12:03:18 -0500
Well, the risks of investment are clear. However, homeowners should never consider buying their home an investment. (I have never agreed with the real estate industry that promoted such trash). Being a homeonwer is providing for a basic human need... shelter. A human need that we will have until death.

So, while no question investors will be hurt by promoting homeownership in the short run, in the long run they will do fine as they will be able to sell their investment at a profit when the market stabilizes and property values increase. But as a matter of public policy, investments are risky and homeownership is stabilizing. It makes no sense to make investments risk less and homeownership more risky.]]> http://seekingalpha.com/article/105739-prosecutors-going-after-fraudulent-mortgage-borrowers?source=feed#comment-305723 305723 Thu, 13 Nov 2008 23:18:59 -0500 http://seekingalpha.com/article/104904-it-might-be-impossible-to-stop-the-decline-of-housing-prices?source=feed#comment-301058 301058
First, the government should create a new lending entity guaranteed by the full faith and credit of the U.S. Gov. that makes loans to BUYERS (not refinances) with rates in line with such a guarantee (5% approx). Only those loans could be purchased from financial institutions. They should make the criteria looser than current standards. This would ease up the ability for credit and since they would be treasury grade, the U.S. Gov. would not have too much difficulty selling the securities for them.

Create a tax credit for homebuyers the purchase in the next two years.

Change the bankruptcy laws to allow cram downs (modifications) on existing loans.

This would shift the losses right back to the banks and investors which would slow down foreclosures dramatically, allow homeowners to stay in their homes and lower payments that equivelent to rent considering the tax incentives. This slow down of foreclosures coupled with a new source of money for purchases would impact the supply side of the equation by reducing inventory.

Unfortunately, our representatives (a joke) are more influenced by the banking and securities lobby then they are doing what is best for our economy and its citizens. As long as they are talking bailouts, that means the average citizen needs to get its wallet out.]]> Sun, 09 Nov 2008 09:06:13 -0500
First, the government should create a new lending entity guaranteed by the full faith and credit of the U.S. Gov. that makes loans to BUYERS (not refinances) with rates in line with such a guarantee (5% approx). Only those loans could be purchased from financial institutions. They should make the criteria looser than current standards. This would ease up the ability for credit and since they would be treasury grade, the U.S. Gov. would not have too much difficulty selling the securities for them.

Create a tax credit for homebuyers the purchase in the next two years.

Change the bankruptcy laws to allow cram downs (modifications) on existing loans.

This would shift the losses right back to the banks and investors which would slow down foreclosures dramatically, allow homeowners to stay in their homes and lower payments that equivelent to rent considering the tax incentives. This slow down of foreclosures coupled with a new source of money for purchases would impact the supply side of the equation by reducing inventory.

Unfortunately, our representatives (a joke) are more influenced by the banking and securities lobby then they are doing what is best for our economy and its citizens. As long as they are talking bailouts, that means the average citizen needs to get its wallet out.]]> http://seekingalpha.com/article/101765-the-right-way-to-encourage-home-ownership?source=feed#comment-290198 290198 Sat, 25 Oct 2008 09:35:56 -0400 http://seekingalpha.com/article/101370-proposed-homeowner-bailout-plans-are-loaded-with-problems?source=feed#comment-288573 288573
The Obama approach is alive and well in California which has temporarily slowed foreclosures while lenders must comply with new notice requirements and delays... but we will see soon the flood of foreclosures.

Truth is, lenders are not really working out loans with consumers. They are churning out paper and making a lot of noise but consumers are being misled, loan mods and short sales are more focused on helping the lenders and not helping the consumer. Note: Persons who refi'ed and are in trouble really need to have their loan documents evaluated for TILA violations as they may be able to rescind as the best remedy.

With all that being said, a method of implementing a solution to stop housing prices from falling is quite simple:

1. Government provide financing to a new entity whose only purpose is to make new loans for the purchase of homes and NOT purchase any old loans or allow refis with the money. This would create plenty of money for sales. I would even ease up on criteria and try to make it inexpensive.

2. Tax credit for anyone who buys in the next 18 months.

3. Allow bankruptcy judges to cramdown on principal residences. If lenders know that a judge can, they will have more motivation to work out loans with consumers.

4. A moratorium on credit reporting of derogatory credit reporting, except in cases of fraud, to bring consumers who lost homes back into the market to stimulate sales. Let them buy the type of house they paid 400k for now at 200k like the rest.

All of this will lead to hitting a bottom in real estate and start the slow recovery process. As for the old loans, well, all made a bad investment, its the American way to take your losses as well as profits. That should be left alone.]]> Thu, 23 Oct 2008 09:36:18 -0400
The Obama approach is alive and well in California which has temporarily slowed foreclosures while lenders must comply with new notice requirements and delays... but we will see soon the flood of foreclosures.

Truth is, lenders are not really working out loans with consumers. They are churning out paper and making a lot of noise but consumers are being misled, loan mods and short sales are more focused on helping the lenders and not helping the consumer. Note: Persons who refi'ed and are in trouble really need to have their loan documents evaluated for TILA violations as they may be able to rescind as the best remedy.

With all that being said, a method of implementing a solution to stop housing prices from falling is quite simple:

1. Government provide financing to a new entity whose only purpose is to make new loans for the purchase of homes and NOT purchase any old loans or allow refis with the money. This would create plenty of money for sales. I would even ease up on criteria and try to make it inexpensive.

2. Tax credit for anyone who buys in the next 18 months.

3. Allow bankruptcy judges to cramdown on principal residences. If lenders know that a judge can, they will have more motivation to work out loans with consumers.

4. A moratorium on credit reporting of derogatory credit reporting, except in cases of fraud, to bring consumers who lost homes back into the market to stimulate sales. Let them buy the type of house they paid 400k for now at 200k like the rest.

All of this will lead to hitting a bottom in real estate and start the slow recovery process. As for the old loans, well, all made a bad investment, its the American way to take your losses as well as profits. That should be left alone.]]> http://seekingalpha.com/article/97633-more-clues-housing-bottom-may-be-near-in-sacramento?source=feed#comment-268097 268097
Where were all those real estate agents in California who were supposed to acting in a fiduciary compacity and advise and protect their clients? Well, many of those consumers are going to be litigating with many of them.

I guess everyone forgot that California put a slow down in foreclosures legislatively. The tidal wave of foreclosures and inventory should begin around the first of the year. I expect that come this winter the last thing you will be talking about is a bottom.

Its about to get way more uglier than we have seen!]]> Sun, 28 Sep 2008 23:58:32 -0400
Where were all those real estate agents in California who were supposed to acting in a fiduciary compacity and advise and protect their clients? Well, many of those consumers are going to be litigating with many of them.

I guess everyone forgot that California put a slow down in foreclosures legislatively. The tidal wave of foreclosures and inventory should begin around the first of the year. I expect that come this winter the last thing you will be talking about is a bottom.

Its about to get way more uglier than we have seen!]]>