Tag Archives: HELOCs

California is Wasting Mortgage Relief on HELOC Abusers

WTF? Why would we want to bail out people who were abusing their HELOCs after the property crash? Have we learned nothing? Are houses and HELOCs truly free money? Continue reading

Posted in Fresh Perspectives, Home Economics, Mortgage News | Tagged california, HELOCs, Loan Modifications, negative equity | Leave a comment

Foreclosures Essential to Economic Recovery

Giving borrowers a pass is not the answer. No matter how you cloak it, any bailout that does not have the borrower endure the consequences of their mistakes is going to result in moral hazard and continued bad behavior among borrowers and bankers. Continue reading

Posted in Foreclosures, Fresh Perspectives, Home Economics | Tagged Foreclosures, HELOCs, Home Prices, Recovery | 1 Comment

Accepting That Housing Prices Will Not Go Back Up

Hope springs eternal, and denial rules downtrodden financial markets. However, locally it appears that housing market watchers are beginning to accept that house prices will not be going up soon. Continue reading

Posted in Fresh Perspectives, Social Mood Swings | Tagged HELOCs, Home Prices, Housing Bubble | Leave a comment

Government Delaying Housing Recovery

Government efforts to prop up the market have only served to reduce sales volumes and eliminate an important component of the move up market. Continue reading

Posted in Best Of The Storm, Fresh Perspectives, Home Economics, What You Need To Know About Buying and Selling Real Estate | Tagged Case-Shiller, HELOCs, Home Prices, Homeownership Rates, Inflation, Obama, Price-to-Rent Ratio, Stimulus, Tax Credits | 1 Comment

Some Borrowers Never Intended to Repay Their Loans

With the huge amount of second mortgage and HELOC debt still on the books of major banks, they are still insolvent. Despite the Federal Reserve stealing from savers and giving the money to banks — which is the net effect of zero percent interest rates — it will take many more years before banks have made enough money to fully write down the losses on this part of their portfolios. It also suggests that the Federal Reserve may maintain zero percent interest rates for a very long time. Welcome to Japan. Continue reading

Posted in Best Of The Storm, Fresh Perspectives, Home Economics | Tagged Deflation, HELOCs, Housing Bubble, Mortgage Delinquency Rates, Ponzi Scheme | 1 Comment