15 Signs That The U.S. Housing Market Is Headed For Complete And Total Collapse

The U.S. housing market is dying.  You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.  Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed.  Mortgage defaults continue to set new records.  Foreclosures continue to set new records.  Home repossessions by banks continue to set new records.  The number of homes being constructed and the number of Americans applying for home loans is at stunningly low levels.  For decades, owning a home has been touted as the very heart of “the American Dream”, but today that dream is out of reach for an increasing number of Americans.  Why?  It is because there are not nearly enough jobs for everyone.  Without a jobs recovery, there simply is not going to be a housing recovery.  Unfortunately, as the U.S. economy continues to come apart like a 20 dollar suit, even more Americans are going to lose their jobs and the U.S. housing industry will continue to experience a very painful decline. (Read More...)

Crackdown! Is The Massive Wave Of Strategic Defaults About To Come To A Screeching Halt?

As housing prices have plummeted over the last several years, an increasing number of U.S. homeowners have suddenly found themselves with home loans that are much larger than what their homes are now worth.  So a large number of them have opted for what is known as a “strategic default” – they have simply walked away from their homes and have let the banks take them back.  Many Americans simply decided that it was not a part of their “American Dream” to pay off a loan that is for two to three times what a house is actually worth.  Over the last several years, strategic defaults have enabled more than a million Americans to get out from under crippling mortgages.  But now, Fannie Mae has announced a massive nationwide crackdown on strategic defaults.  Fannie Mae says that it will be closely examining the mortgage data to determine who is strategically defaulting and who is not, and they are going to be “going after” those who they believe have committed strategic defaults. (Read More...)

Housing Collapse 2010?

Will we see the start of another housing collapse before the end of 2010?  That is what a number of top economists are beginning to fear.  The truth is that there are some very troubling signs in the housing numbers.  The massive tax credit that the U.S. government was offering to home buyers helped prop up the housing market for quite a while, but now that the tax credit has expired, many real estate professionals are bracing for the worst.  The reality is that foreclosures continue to set all-time records, the mortgage industry is a complete mess and another massive wave of adjustable rate mortgages is scheduled to reset in 2011 and 2012.  As the U.S. economy continues to falter, and as the nation starts to deal with the economic fallout from the Gulf of Mexico oil spill, many are now wondering how in the world Americans are going to be able to afford to purchase millions of these homes which are still massively overpriced.  The American Dream is still way too expensive for the vast majority of Americans.  So are there signs that housing prices in the U.S. could be on the verge of another major decline? (Read More...)

Living The Dream: What Do You Own – Really?

If someone came up to you and asked you what you own, what would you say?  It may seem like an obvious question, but it is actually a lot more complicated than you might think.  We live in a very materialistic society.  In fact, a large percentage of Americans today define their lives by what they “own”, and a large percentage of Americans consider “living the American Dream” to be about accumulating a house, several cars and a massive pile of possessions.  But what does it mean to “own” something anyway?  Does it mean to have something in your possession?  Well, if that was the case then someone leasing a car for three years could be considered the owner.  But that obviously is not the case.  Does “owning” something mean that nobody can legally take that thing away from you?  Well, if that is the case then perhaps we all “own” a lot less than we think we do.  (Read More...)

Is It Fair For The U.S. Government To Give Money To Some People (But Not To Others) To Help Them Pay Their Mortgages?

Millions upon millions of Americans are struggling with paying their bloated mortgages right now.  So is it fair for the U.S. government to be giving money to some people (but not to others) to help them pay their mortgages? Well, it turns out that U.S. citizens in 10 states will soon be receiving money as part of a $2.1 billion federal program to help distressed homeowners pay their mortgages.  But is this fair?  Why will only citizens in 10 states by getting funds?  What about the other 40 states?  Well, the money for this mortgage relief program is going to come from a special fund within the Troubled Asset Relief Program (TARP) known as the “Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets”.  In other words, people in the areas where housing prices have fallen the most are going to get help living the American Dream, and everyone else is out of luck. (Read More...)

American Deadbeats

Is the current economic crisis creating a generation of American deadbeats?  Once upon a time in America, we were taught that no matter how much financial trouble we get in we pay our debts – no matter what.  But now that has fundamentally changed.  Today, record numbers of Americans are filing for bankruptcy and a new term had to be invented (“strategic defaults”) to describe the large number of people who are making “business decisions” to walk away from underwater mortgages.  Meanwhile, many of these same individuals who are walking away from their debts are spending big money on cruises, vacations and new cars – as if they were still entitled to all of the good things that come with living the American Dream.  Below you will read some incredibly disgusting examples of this.  It is as if a whole generation of Americans has decided that “financial responsibility” is a problem that they don’t care to be bothered with.  But what is it going to do to the U.S. financial system if we can no longer count on people to honor their debts? (Read More...)

The Foreclosure Crisis

Those who believe that the U.S. real estate crash is over are delusional.  The truth is that all the numbers point to the foreclosure crisis getting worse – not better.  Many of the talking heads on the major news shows want to make the American people feel better about the real estate market and are projecting that things will soon turn around, but a cold, hard look at the statistics tells an entirely different story.  Foreclosures are increasing and there is every indication that they will continue to increase.  According to RealtyTrac, initial foreclosure filings were reported on 367,056 properties in March, an increase of almost 19 percent from the previous month.  It was also the highest monthly total since RealtyTrac began issuing its report on initial foreclosure filings in January 2005. (Read More...)

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