Comments on: How Real Is The Housing Crisis? http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/ The Unofficial Guide to FHA Loans & Mortgages Mon, 01 Dec 2008 18:20:22 +0000 http://wordpress.org/?v=2.6 By: Heather Dull http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-27046 Heather Dull Tue, 07 Oct 2008 15:44:27 +0000 http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-27046 This housing crisis has an effect on every corner of the United States. However, the majority of problems comes from poor lending practices. The big mortgage companies being greedy. The government just passed a $200 billion temporary bailout of mortgage backed securities. This is to help the bigger companies. I think that the government needs to help the local mortgage companies to get the house market moving again in towns and cities around the country. This housing crisis has an effect on every corner of the United States. However, the majority of problems comes from poor lending practices. The big mortgage companies being greedy. The government just passed a $200 billion temporary bailout of mortgage backed securities. This is to help the bigger companies. I think that the government needs to help the local mortgage companies to get the house market moving again in towns and cities around the country.

]]> By: alberto babot http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-21684 alberto babot Fri, 01 Aug 2008 14:36:50 +0000 http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-21684 nobody talk about the real problem with the housing crisis: 1.-taxes All the cities in the country have innadecuate methodo to calculate the tax. solution:no more tax over the property and add 3 or 4 cents to the consumer taxes depend of the city. 2.- insurance. always more insurance when the catastrofe come to our city then the gov.pay for that ?where is the money that i paid. solution: no more property insurance nobody talk about the real problem with the housing crisis:
1.-taxes All the cities in the country have innadecuate methodo to calculate the tax. solution:no more tax over the property and add 3 or 4 cents to the consumer taxes depend of the city.
2.- insurance. always more insurance when the catastrofe come to our city then the gov.pay for that ?where is the money that i paid.
solution: no more property insurance

]]> By: marc brinitzer http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-20784 marc brinitzer Mon, 21 Jul 2008 22:07:44 +0000 http://www.fhaloanpros.com/2008/07/how-real-is-the-housing-crisis/#comment-20784 Peter, here in Sacramento and in California in general, values have fallen 50% in the last couple of years. The crisis this has created is far beyond that of resetting subprime and neg am loans. Even those folks with "good" mortgages are walking away from homes at the first hiccup. Why struggle for years to save a home worth $300k on which you owe $425k? Hence the "buy and bail" problem. But the bigger issue to me is the "negative wealth effect", the perception of the loss of wealth felt not just by troubled homeowners but felt equally by all homeowners. Combined with the erosion of 401k values, consumer spending is curtailed, jobs are affected, and the spiral gets worse. And, a year ago, the pundits were saying this would never spill out of the subprime arena. Peter, here in Sacramento and in California in general, values have fallen 50% in the last couple of years.

The crisis this has created is far beyond that of resetting subprime and neg am loans. Even those folks with “good” mortgages are walking away from homes at the first hiccup. Why struggle for years to save a home worth $300k on which you owe $425k? Hence the “buy and bail” problem.

But the bigger issue to me is the “negative wealth effect”, the perception of the loss of wealth felt not just by troubled homeowners but felt equally by all homeowners. Combined with the erosion of 401k values, consumer spending is curtailed, jobs are affected, and the spiral gets worse.

And, a year ago, the pundits were saying this would never spill out of the subprime arena.

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