In an absolutely stunning development, Bank of America, JPMorgan Chase and GMAC Mortgage have all suspended foreclosures in many U.S. states due to serious concerns about foreclosure procedures. There has been an absolutely massive tsunami of foreclosures in recent years and it turns out that mortgage company officials dealing with foreclosure paperwork have not always taken the time to process each foreclosure properly. Things have gotten so bad that a number of U.S. states have actually opened up official investigations that are looking into some of these foreclosure practices. But what did everyone expect? There has been such a dramatic surge in foreclosures over the past several years that it was almost inevitable that shortcuts would start to be taken. Back in 2005, there were only about 100,000 home repossessions in the United States. Last year there were about 1 million home repossessions in the U.S. and RealtyTrac is projecting that there will be a record 1.2 million home repossessions this year. Needless to say, this has created a paperwork headache for mortgage companies of unprecedented magnitude. (Read More...)
Mortgages
Banks Are Failing At A Record Pace, The FDIC Bank Problem List Continues To Grow And Most Americans Don’t Even Realize The U.S. Banking System Is Dying
In the mainstream media, all the talk is about how the “recession” is over. But the truth is that our economic problems are far from over. In fact, the U.S. banking system is dying. U.S. banks continue to fail at a record pace. The FDIC list of problem banks continues to grow at an alarming pace. Loans and mortgages continue to go bad at an accelerating rate at banks across the United States. The truth is that we are in deep, deep trouble, and the vast majority of the American people do not even realize it. But the American people better wake up soon, because if the U.S. banking system dies, the American Dream is going to die along with it for tens of millions of Americans. (Read More...)
15 Bone Chilling Signs That Part Two Of The Double Dip Housing Crash Has Begun
These are harrowing times for anyone trying to sell a home or for anyone who is trying to make a living in the housing industry. But unfortunately, there are a whole lot of signs that things are about to get quite a bit worse. U.S. home sales have hit record lows in recent months. An increasing number of sellers have started to reduce their asking prices, and there are signs that home prices are already starting to slip substantially in many areas of the country. Meanwhile, the inventory of unsold homes in the United States continues to rapidly increase. Home foreclosures and bank repossessions of homes continue to set all-time records. What this all means is that the U.S. housing market is being absolutely flooded with homes for sale at a time when there are very few buyers. There is way too much supply and not nearly enough demand and as a result home prices are being pressured downward. The home buyer tax credits that the U.S. government was bribing home buyers with helped stabilize the U.S. housing market for a while, but now the tax credits have expired and things are getting scary out there. (Read More...)
10 Reasons Why Barack Obama’s “It’s Not A Stimulus” Package Is A Cruel Joke On The American People
As election season 2010 draws near, the Obama administration has finally realized that the Democrats could actually lose both the House and the Senate in November. Suddenly all Obama wants to talk about is his wonderful new plan for the U.S. economy. Unfortunately, what he is suggesting is far too little and far too late. Anything Obama is proposing now will not be passed by Congress before the upcoming elections, and that is bad news for the Democrats. The American people tend to vote based on their wallets, and right now the American people are not happy. They desperately want someone to “fix” what is wrong with the economy. Obama is running around the country trying to convince people that he is the man to restore the American Dream, but at this point the American people have less faith in his economic policies than ever. The White House is insisting that Obama’s new economic plan is not a new “stimulus package”, and that is actually true. Obama’s new plan will not stimulate much of anything. The truth is that Obama’s new economic plan is really just a cruel joke on those who are willing to have faith in Obama’s ability to somehow turn the dying U.S. economy around. Unfortunately, throwing several hundred billion more dollars at the problem is not going to do anything to fix the foundational problems that are destroying our economic system. (Read More...)
The ABC’s Of The Great American Housing Crisis
It doesn’t take a genius to realize that a horrific housing crisis in unfolding right in front of our eyes. Yesterday it was announced that existing home sales plummeted 27 percent in the month of July. Today it was announced that new homes sales dropped to the lowest level ever recorded in July. But why is this happening? Why is the American Dream still dying for millions of American families? Wasn’t the recession supposed to be over by now? Weren’t home prices supposed to be moving back up by this time? Well, in this article we will attempt to succinctly break down the ABC’s of the Great American Housing Crisis. Hopefully this will help people understand why all of this is happening. (Read More...)
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...)
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...)
14 Pieces Of Really Bad News For The U.S. Economy
Federal Reserve Governor Kevin Warsh told an audience on Friday that the U.S. economy is in the midst of a cyclical recovery and that there are “encouraging” signs of improvement in financial markets. Many other governmental and media talking heads have uttered similar pronouncements about a “recovery” which will put the U.S. economy back on track. But are we really experiencing a recovery? If so, then why are foreclosures still hitting record levels? Why is unemployment so high? Why are so many cities and states on the verge of bankruptcy? Why are so many average Americans hurting so much? The truth is that what we are experiencing now is a period of stabilization before the “second dip” of the double-dip recession so many economists have been talking about hits. What the U.S. economy is actually in the midst of is a complete and total structural failure. The American Dream is going to permanently die for millions of American families. Millions more are going to lose their jobs and millions more are going to lose their homes. This is what we get for piling up the biggest mountain of debt in the history of the world and outsourcing much of our manufacturing and industry to places like China and India. Now we are an aging, bloated dinosaur trying to survive on a service economy and the biggest debt bubble of all time. (Read More...)