Title Insurance Firms Going Down
Written on 21 April 2008 by Avatar
As expected, even the title insurers are now getting to feel the crunch the sub-prime lending market left and the after-taste is sour for as less and less houses are sold, they also lose the ability or market to offer their products and services. Last year, the five companies who hold 90% of the title insurance market posted losses at around 12% and that was just as the flames were getting hot. The flame then has now become a wildfire and further losses that could go as much as 20% is expected this year making it worse for these companies. Losses in the millions have been reported as first quarter profit results are posted and the outlook does not look good. The real estates industry is feeling the strain and common Americans are too, selling off non-necessities, renting, and more are some of the trends being observed as the economy slips deeper into a state of depression.
Freddie and Fannie’s Proposed Fix - Flawed
Written on 17 April 2008 by Avatar
No sooner that the proposal from Freddie and Fannie have hit the Mortgage crisis and after it was hailed to be the next best thing to what had happened to the sub-prime lending industry, experts from all sides are already crying foul even before they have been put in place. Why, the people from the Mortgage Banker’s Association say that the proposed code of conduct they have already made with the federal government is flawed and sketchy at best. The proposed move places Federal agencies to oversee government-sponsored industries is quite difficult and would make already tedious process harder. Lenders are barred from relying on in-house appraisals for those that are done by affiliated businesses. The whole deal would create more haze than clear up the process and many more problems would result from them as previously thought. The problem is that Freddie and Fannie have already signed the deal that is set to go into force this coming year which are only a few months off. They did not consult the industry nor it’s leaders on the move they were going to make and that they acted on their own accord without any representatives of the affected industries. All this to shield appraisers from the pressures of industry which sometimes tries to inflate home values.
Foreclosed Property - Trash It!
Written on 13 April 2008 by Avatar
Lenders are finding it very hard to recover from the financial crunch and so do the previous owners of houses that have been foreclosed. We have seen this in the past months, that people are turning to desperate measures to assure nobody else benefits form their foreclosed homes. They trash it, some turn to arson and other crimes that render these houses un-sellable or in need of major repair for them to once again become appealing to sell. These cases are on the rise and arson being a crime is having more and more houses being razed to the ground by fires their previous owners have initiated. Call it frustration or call it desperation, it shows the true effects of the financial problems we are now experiencing that is bringing out the worst in some of us.
More Banks going… going… GONE
Written on 9 April 2008 by Avatar
More banks are expected to be affected by the current credit crunch that has stemmed off the sub-prime lending market’s problems. The ever lowering prices of homes (where many banks, national and local have investments in) is proving to tax on them heavily that if no changes occur, they could fall one by one. The next problematic avenue that is seen to arise from the financial crisis is the credit card sector due again to the effects of the slowing economy that has people scrambling to save and scrounge up all for savings for the uncertain future of the housing market.
Vacation homes and Investment Properties - Strong and Steady
Written on 5 April 2008 by Avatar
The movement may be slow but the investments and purchases of vacation homes and other luxury properties by foreigners continue to maintain momentum. This is providing just enough juice to prevent the hose sales market wheels from grinding to a complete halt which would mean the loss of hundreds if not millions of jobs in all sectors. A rise of 11 percent from last year’s figures from 21% in 2007 to 33% to this day, it means that the market, in that avenue anyway is still going strong. The typical vacation home buyer was in their late 40’s till early 50’s and that they were investing indeed for their vacationing needs. Bothe foreign and local buyers are still doing shopping in spite of the problems being experienced in local house sales.
House Prices Leveling out – DEEP!
Written on 1 April 2008 by Avatar
The idea that the housing market has started to level out is not accepted for there are not enough house sales to signify such. Imagine a home sale rate of 3.0% for January and that gives you a picture of a housing market that may take forever to recover. The Federal Government has said that they have seen no further slides in the trends that are visible so far yet that remains to be seen as rattled home buyers turn to renting till the smoke settles. To assume that home-buyers would get back on the hunt soon is a very early prediction indeed for as of now, they’re nowhere to be seen.
House Sales - Where?????
Written on 29 March 2008 by Avatar
House sales remain low if not stagnant due to problems in all avenues of the business sector. Inflation brought about by excessive expenditure into the two wars the US is part of, the ailing economy that has already dug deep into their reserves, and many more issues such as with insurance and others continue to plague the economy holding it down. The amount of new homes that have been constructed is plentiful but these same houses are not going anywhere, and they amount to more than a year’s supply. These homes have to be liquidated or turned back into cash for them to of any good to anyone.
Stimulus Package, Where????
Written on 25 March 2008 by Avatar
The stimulus package the Fed has injected into the economy has done little and people are feeling the crunch. Saving on all they could and prompting them to follow closely their spending. The dollar has maintained a stable hold, just barely as the effects of the housing crisis affects world markets. When will the problems end for the ailing American economy, experts say in 2009 but others speculate that time is no longer of the essence, for the problem (or should we call it the economic bubble that has it’s roots deeply entrenched, from wall street down to the individual citizen) has already blown sky high and everybody is running out of places to hide from the repercussions of shortsighted legislation and business management.
More Jobless - Less Houses
Written on 21 March 2008 by Avatar
Market analysts are seeing dip in house sales due to the rising number of people who are loosing their jobs. Industries are being forced to lay-off personnel to maintain their operations and stay through the rut in the economy. Most have the word of their employees of re-employment when things get better. The forecasts are still quite murky yet people are hanging on. Real estate will be changed forever by these events and people wish they would learn form their mistakes. Having a house to live in is just as good as having enough money to pay for their homes so they can keep living in them. The practice of getting people houses without proper financial planning sends them to the streets if economy fluctuates and they are left to fend for themselves with federal and state aid not sufficient enough for them to survive.
Bailout – Not in a Million Years!
Written on 17 March 2008 by Avatar
Bailout is another example of the Federal Government trying to answer for a mistake somebody else did so everybody just shuts up. Taxpayer dollars are the source of the funds and people are mad about the proposals. Critics say it initiates a practice that may help create a security blanket over the market that crumbles as fast as it was put up. It also encourages others to follow suit after a few years for the government will not allow such an event to happen again. Why should the government have to pay for the mess they have created all by themselves? Good point, for tougher regulation and accountability might be the key in preventing these events from recurring in the future.
