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Would more than 9 out of 10 be 10?

ping

The deterioration of homeowners' ability to keep up with mortgage payments will add oomph to calls on Capitol Hill for new regulation of mortgage lenders and brokers. "There is considerable discussion by incoming House Finance Committee Chairman Barney Frank [D-Mass.] to enact a predatory lending law for these mortgage lending problems," says Keith Ernst, senior policy counsel for the Center for Responsible Lending.

Ahhhh yes.. get the government involved to save us from ourselves...

Here comes the pinch: To manage household debt, Americans have used such moves to pull over $2 trillion out of their homes in the past five years.

And during that past 5 years, Homes have appreciated over $10 Trillion, so homeowners have only tapped into 20% of their appreciated equity.

The folks in my town are still hoping against hope--putting their houses on the market for 2x-3x what they're worth and hoping the Kalifornians will show up to pounce on an "investment property". This charade has been going on for over a year now.

When you hear the same thing from lots of sources, more often than not it's true. One thing I heard from lots of people early on is: Never, ever borrow against your home, or roll debt into a mortgage unless it's your last option.

People want everything now. Kids who are 25 want a home bigger, newer and nice than mom and dad's house. The concept of a starter home is lost on most people now.

So, they make a deal with the devil. (Not literally, but in terms of shaky financial activity). Well, the bill is coming due.

Here we go...the set up serve for Democrats to come in and overhaul the mortgage lending industry under the guise of helping the poor, down-trodden and helpless consumer who is preyed upon. Of course, Barney Frank and Dodd's "fix" will result in higher mortgage rates for everybody else and a severe tightening of access to credit. This of course will choke the economy and bring it to its knees.

Chris Dodd and Barney Frank, their from the government and they intend to "help".

You're enjoying this, aren't you?

Hey Barney and Chris -- how about lowering taxes so people can better afford their housing?!

BTW, the Center for Responsible Lending is chockfull of lefties and poverty pimps.

HOWEVER

I tend to agree with the summary of their press release as well as their concernes over lending practices.

"There is considerable discussion by incoming House Finance Committee Chairman Barney Frank [D-Mass.] to enact a predatory lending law for these mortgage lending problems,

Right. More government intervention and more legislation needed. Let's ignore personal responsibility.

hold mortgages doomed for foreclosure in the next few years

Doomed in a FEW YEARS? So they can predict the future? Wow. And all this time I thought it was impossible.

Sorry, but the use of the name Barney Frank and the term "predatory" in the same sentence should really be discussing a different topic all together.

No comment? Is this good news or bad news? Is the glass half full or....

If this so called mortgage bust is a case of flippers takin' it in the shorts,Break out the popcorn and beer.

I'm ready to watch the show and sit back and laugh.

Same article with a Baltimore/Washington area slant.
Baltimore Sun

Good. Cleaning out the underbrush helps prevent bigger fires.

This article is kind of complicated for a boy living with his mother isn't it?

Here's a classichttp://bubbletracking.blogspot.com/2006/12/4closure-ranch-part-v-flip-gone-flop.html

4Closure Ranch Part V: Flip Gone Flop in 5 Short Months

This one has it all, folks. New construction flip, zero down/100% financing, subprime lending, first payment mortgage default, a firm commitment to the 'False Drop Theory,' and a flashy Cadillac Escalade parked out front.

10219 Camino San Thomas is a 3,729 sqft home in the new Travata development of 4S Ranch purchased 6/23/06 for $1.106 million. Financing courtesy of WMC Mortgage using their "SuperSize My 80/20 Combo" jumbo loan package with a $885,000 first and a $221,000 second.

Fast forward 5 months to 11/28/06, the notice of default is sealed and delivered. What have we learned about NOD's filed less than 8-9 months after the loan origination? First payment mortgage default until proven otherwise.

Our flipper has not given up hope, however. Since 8/23/06, our flipper has been entertaining offers at $1.256 million. How are homes in the rest of 4S Ranch doing? Well, John Laing Homes is offering a 3,274 sqft home for $735,824. That's $225/sqft vs. the $337/sqft that our flipper friend is hoping for. What do you think about our flipper friend's chances? Think Mr. Smiar's 'False Drop Brigade' will come to the rescue?

May be a god time to pick up vacation property at a cheap price...On the court house steps.