All Posts Tagged With: "mortgage bailout"

Politicians, Bailouts and Bank-Owned Houses

Around the corner from my former apartment in Newton was a house that was taken in foreclosure. The “For Sale” sign had been there for a very long time, the lawn wasn’t mowed regularly and the shrubs had died in the winter but hadn’t been removed.

Walk around your own neighborhood and see how many houses are for sale. Sometimes the sign openly states that it is bank-owned, other times you might have to search on the county assessors website. There are plenty of bank-owned houses in Iowa; there are many, many more in California, Nevada, Michigan and Illinois.

The point is this: With such a large supply of bank-owned houses, of course houses will continue to fall in price. When a store has excess …

The Economy and the Current “Credit Crisis”

I was reading Mr. Smith’s blog below and my blood began to boil.  I must be on the wrong email lists, because I’m not a proud recipient of Senator Harkin’s email.  Please do not sign me up.

What made my blood boil was the notion that there are innocent victims in the curreng housing mess–that “predatory lenders” are to blame for the entire thing.  So I started to think like one of the “victims” did when they originally purchased a home.  Since most of the issues are related to “Alt-A” mortgages, not true “sub-prime”, it’s important to define the differences.

Sub-prime typically refers to credit applicants with impaired (“bad”) credit histories.  Alt-A typically refers to the following:  no-doc or low-doc mortgages; interest only; 100% financing …

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