audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I suspect you'll be right.FWIW, I think history will view the teaser freezer as too little, too late. But let's see how it goes.
Audrey
I suspect you'll be right.FWIW, I think history will view the teaser freezer as too little, too late. But let's see how it goes.
Emilylynn, thanks so much for sharing this article. I just finished reading it and started the reader comments, which I will go back to later. I really wondered why our government seemed to be running around like chickens with their heads cut of the past couple of weeks. Now I know, from somebody in the know, Herb Greenberg. We are only in the first inning of this mortgage meltdown. I never really thought about all of the other so called prime mortgages that were in danger of default until I read this article. I recommend that everyone who is interested in this thread to read Mr. Greenberg's take on the situation.Here is an interesting article that came out today. It explains why the "subprime" situation is just the first inning in a much bigger mortgage meltdown.
Herb Greenberg » Blog Archive » Straight Talk on the Mortgage Mess from an Insider
Absolutely not true. For example, I pay zero interest now and will pay zero interest going forward.
Here is an interesting article that came out today. It explains why the "subprime" situation is just the first inning in a much bigger mortgage meltdown.
Herb Greenberg » Blog Archive » Straight Talk on the Mortgage Mess from an Insider
However, it still seems to me that the "worst" will be big losses for foolish lenders and buyers, and a modest recession for the rest of us. That seems about right given the size of the bubble.
As for the size of the bubble, that's a little easier. It's about $6 trillion in residential real estate "froth" coupled with about $3 trillion in too-much-mortgage debt. Those are the numbers we'll have to work off to get back into shape. No idea what the scope of the problem might be world-wide, but you can be certain that the US was not the only nation with a credit bubble.
The dollar figures you're giving......... is that the amount of wealth that's actually going to go poof? Or is it the value of the mortgages/loans that will go into default.......but a portion will be recovered via selling the collateral such as the home?
since credit will be tighter going forward .
If requirements are more stringent (and I think they will be), will that mean a return to guidelines similar to what we had a decade ago........ like typical 20% down, live in the house you buy, have a job or some dependable income flow....... those sort of things, or even more stringent?
Thanks twaddle.
You know, it's too bad that the ripple effects of all this will be painful to the economy because, frankly, I'll be glad to see lenders less willing to loan money to high risk borrowers.
By "tighter," do you mean higher interest rates or more stringent requirements or both?
If requirements are more stringent (and I think they will be), will that mean a return to guidelines similar to what we had a decade ago........ like typical 20% down, live in the house you buy, have a job or some dependable income flow....... those sort of things, or even more stringent?
Can I claim I didn't understand my contract, and keep my 5% rate?
Don't be shy. Take advantage of the situation and negotiate for what you want.
Well, doesn't that lady on TV have the same option? It seems to me she is saying, 'The govt needs to take care of this for me'.
I understand what you are saying though - to whatever extent these deals go through, I should be able to leverage that in my favor. But I'm looking at the bigger picture - all the people that decided on a fixed mortgage at maybe a point higher than an ARM. They are all going to feel like chumps - they could have had the low rate, and push the risk on the govt (you and me), too.
It just seems like bad precedent.
-ERD50