The Housing Bubble Gets Ready 2 Burst:Homeowner Tips To Survive RE burst

[NVMojo]

The question regarding soft or hard landings with respect to our nations housing "bubble" is about to get answered, with a touch down that will evolve into a very hard landing. This hard landing may put at risk the entire economy. The two largest culprits are homebuilders/mortgage firms that forced real estate appraisers to come up with inflated valuations and the second culprit are teaser rate, adjustable rate mortgage products that are now starting to adjust beyond many homeowners ability to make the payment. The victims are or will be our nation's homeowners, our nation's pension funds and ultimately the U.S. Taxpayer in a Katrina type bail out.

(PRWEB) September 6, 2006 -- The question regarding a national real estate bubble, and or a hard or soft landing according to the President of The National Mortgage Complaint Center/Homeowners Consumer Center "is about to get answered." Mr. Thomas Martin the President of this group has indicated that the "bubble is going to be more like a nuclear detonation with consequences getting progressively worse, with no quick fix." He calls it "the Hurricane Katrina of real estate, because everyone knew it was coming and no one prepared for what it would, or could do."
is about to get answered.

"Lagging home sales and home price reductions are but one indicator, ever increasing foreclosures are the second.The reality is that with real estate valuations coming back to earth many homeowners have no equity left in their homes or actually owe more than their home is worth." So how did this happen? Martin says the answer can be summed up in one word, "Greed."

For over two years the National Mortgage Complaint Center has been expressing concern/panic over regional or national homebuilders forcing local real estate appraisers to come up with inflated or over-valued real estate valuations. The net result is, as builders inflated the price of their new homes, existing homeowners inflated theirs. This practice goes back to about 1998. It was a game of musical chairs. According to Martin,"at some point the music would stop and someone would get left without a chair. In this instance it will be the homeowners who recently purchased a home and or the pension funds who thought they were buying a real estate portfolio worth 100%. In reality new mortgage backed securities might only be worth 90% or 85%. Ultimately it will be the taxpayer; as this real estate bubble burst will call for another massive federal bail-out just like the Savings & Loan Bail Out of the late 1980s & early 1990s."

more...

http://www.prweb.com/releases/2006/9/prweb429485.htm

[NMDemDist2]

1. just like the Savings & Loan Bail Out of the late 1980s & early 1990s."

just like the last time the Repukes were in power

go figure :banghead:

[AX10]

2. Exactly!

[AnnieBW]

3. Fixed.

When we refinanced, we made damn sure we got a fixed rate mortgage. We could already read the writing on the wall back in the spring. My Mom worked in a bank, and she warned me to never, ever, ever get an adjustable rate mortgage.

[NVMojo]

4. it's going to be a sad thing for the people who got those and weren't

warned or weren't listening.

[phantom power]

6. A responsible government would outlaw ARMs entirely.

And credit cards should be regulated far more stringently too.

[Warpy]

8. Do you know how hard banks fought to get all this crap

written into the deregulation that happened during the Reagan and Poppy years?

It seems that stupid and short sighted pubbies have to be reminded how stupid it is to deregulate anything over and over again.

Capitalism only works when it's heavily regulated. Otherwise, it becomes a total nightmare for 99.9% of the population.

[InkAddict]

5. Won't matter a bit

in the states where the Red-backed corporate fascist globalists' M.O. is to freeze employment and wages, and eliminate health, pension, and social services, thereby, placing more and more into poverty.

[phantom power]

7. I don't see any "maybe" about it. The housing market *is* our economy.