I guess this might be the best place for this discussion. Not sure how much traffic it will get in this forum, nor how long that link will last. Oh, and don’t waste forum space ranting about Bush. If you want to bicker about the politics revolving around him, start another thread.
So, what are people’s thoughts on the mortgage freezes expected to begin in 2008? And how could this affect real-estate investing opportunities?
Dean
But not every homeowner with a subprime mortgage would qualify, only those who are current with their teaser-rate payments and can't afford a higher interest rate.
This is not the reason for the crisis. The people who are currently on time are not the ones facing foreclosure and causing the crisis. I am at a loss for the rationale.
However, I do agree that it should be on a case by case basis. There should not be a blanket policy. Everyone knew going in that their mortgage would adjust at the end of the ARM period. If the reason the individual was in an ARM was due to their desire to be better than the Jones’ and buy the mini mansion, shame on them. This program should be for the average American family who are struggling to make ends meet due to unforeseen circumstances.
The housing crisis will continue as all of those who were laid off from carpenters, electricians, plumbers, roofers, lumber yard workers, to even carpet salesmen. The problem is, these jobs were supporting home ownership, but they are ceasing to exist.
I also believe that inventory levels are currently high and in most cases, overpriced. There are still great deals out there you just have to be selective. In most cases, those homes are not going to appraise for any where near what these people owe on them and folks are going to be upside down. Those that do not think that a recession is creeping up are smoking something and it isn’t tobacco.
This is only the beginning…it is definitely going to get worse before it gets better.