Posted on 08/08/2007 6:47:57 AM PDT by Hydroshock
NEW YORK - The dream of owning a home is fading away for many Americans with less than stellar credit.
On Tuesday HomeBanc Corp. said it will not issue any more loans, and Impac Mortgage Holdings Inc. shut down a type of loan called “alt-A” for people with limited documentation or slight credit issues.
That followed bankruptcies for two of the country’s biggest home lenders — American Home Mortgage Investment Corp. and New Century Financial Corp. — and tighter terms at most other lenders that are thus far surviving a shakeout in the industry.
“Every day I hear about a number of lenders that are reducing their products,” said George Hanzimanolis, president of the National Association of Mortgage Brokers. “It is going to take a while before the dust settles.”
(Excerpt) Read more at msnbc.msn.com ...
Big time investor talking to countrywide about taking 300 units in San Diego county at 70% of today's market value. He plans to flip them. I'm waiting for info from our title rep. Caution, a lot of open rentals right now. Anyone buying may have to settle for lowball rents for now.
M. Espinola -- The DOW already crashed about 150 points today. But the day is young. I agree with what you said. This is going to be fun to watch. Get some popcorn.
We know good cash flow rentals in many areas in and out of Cal. However, our goal is long term apreciation. We’re 250 a month ahead on three houses, but have made hundreds of thousands in appreciation. We take the equity and invest at a higher rate than we pay on the loan. When you figure in the tax deduction on the loan and the net cost of borrowing, it’s not hard to do. Much like banks do when they give you interest and loan the money out at higher rate.
And over a few years as your investment compounds you’re way ahead of what you are paying to borrow the money.
We own a few properties.... we are in it for the long term too. They are our retirement plans in about 20 or 30 years. Dump money into the loans until they are paid off... sell them in our late 50’s or not...
Your well into your plan and you'll probably do alright. RE is much better with the leverage than most other ways to build a retirement.
Best wishes!
Excerpt:
The Federal Reserve, trying to calm turmoil on Wall Street, announced Friday that it will pump as much money as needed into the U.S. financial system to help overcome the ill effects of a spreading credit crunch.Bernanke response is print more money. That is why they call him 'Helicopter Ben.' Debasing the dollar and by running printing presses 24/7 solves all problems, according to the Fed. No big deal. Money is only paper.The Fed, in a short statement, said it will provide "reserves as necessary" to help the markets safely make their way. The central bank did not provide details but said it would do all it can to "facilitate the orderly functioning of financial markets."
The Fed pushed $35 billion in temporary reserves into the system Friday morning, on top of a similar move the day before.
Nobody asks, 'Where did that $ 35 Billion just come from?' The answer is nobody really wants to know. 'We just invented it.' We used monopoly money and added it to the federal debt.' Taxpayers cheer, 'More free money.'
Treasuries Almost Erase Gains as Fed Adds Cash to Bank System
Bloomberg reports the truth again. We cannot post it here. China will be very unhappy. They already said they will not hesitate to dump one $ trillion in US treasuries. No big deal Bernanke says. The Russkies, Iran, Syria and North Korea have purchased new high tech printing presses. They love to counterfeit $ 100 dollar bills.
Shades of the old Weimar Republic all over again.
Housing Bubble vs. Great Depression
You and I talked about this 1 1/2 years ago, and we got flamed : )
Have a great weekend!
They do that with car loans in my state too.
** I read the Topix because our local papers only give good news about real estate. I am NOT a gangbanger but I live in a city that houses a NEST of them (thousands). Living in Stockton can be more dangerous than living in Baghdad. The gangs own this town and the city cops do nothing.We went to a family Asparagus festival last month and US MARSHALs and FBI (Name PATCHES) were working the crowd looking for the most deadly of these criminals. I saw about 5 agents grab a wanted felon and he fought like an animal. These people are building strongholds in our suburban neighborhoods. They have moved up to Lodi and are now in Galt. Read the newspapers.
Most Sacramentans don't realize that Sacramento County dips to the West AND South. Stockton-Lodi foreclosure rates are the highest in the US, but our news papers won't print stories about it. Stockton-Lodi also has the HIGHEST rate of auto theft in the US for the past 5 years.
With foreclosures comes a glut of houses for rent signs that brings in even more of the gangs. These are gangs in middle class areas.
First they do petty thefts, garffitii goes up, turf zones erected, car thefts drugs, prostitution. There are 9 "massage parlors" in just a few blocks of Lodi. The highly organized gangs of Stockton are moving North. They are in Lodi and Galt and follow the river. Get out if you can! Last week we had a whole family abducted in Lodi by criminals. They attacked the house home invasion style only a few miles from the police department. Police do nothing, so the gangs start controlling the cities. Most of our gangs are Latino and Asian and one Pakistani gang. They are pinching you by moving North to Sacramento. **
Source
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