As consumers, it’s not like we have a lot of clout with huge financial institutions. Just remember what it was like when you applied for your mortgage. You probably had to search all over the place for a massive amount of documents that told your entire life story.
Did it feel like you had to sell your soul and bend over backwards to prove that you were worthy? (more…)
The bad mortgages that contributed strongly to the current financial crisis have produced a horrible wave of home foreclosures. Unless the foreclosure surge eases, even the most extravagant federal stimulus spending won’t help to create an economic recovery.
The Obama Administration is expected within the next few weeks to announce an initiative of $50 billion or more to help financially stressed homeowners. But with 1 million residences having fallen into foreclosure since 2006, and an additional 5.9 million expected over the next four years, the Obama plan — whatever its details — can’t possibly do the job by itself. Lenders and investors will have to acknowledge huge losses and figure out how to keep recession-plagued borrowers making at least some monthly payments. (more…)
The bailout of America’s mortgage giants could have a profound impact on your personal finances. Unfortunately, there is nothing immediately in the cards to help America’s desperately-seeking-mortgage-help consumers. Rumors are flying, though.
Meanwhile, the economy is awful. It’s a mess that has taken a long time to reach critical mass, and it will take a while to get it all straightened out. (more…)