Open Question: Can a family let a house go into foreclosure if the house is only titled in the wife's name, then......?

Here is the story, my wife's best friend is married. When they purchased their first home her husband's credit was poor so they received a better interest rate by titling the home in only her name. Now many years later they were forced to relocate and they have found themselves backwards in their mortgage and apparently are unable to sell. I am not certain exactly how much more they owe than the house is worth but I get the feeling that it isn't more than $20,000 or $30,000. They have rented for nearly a year now and have been paying their mortgage. She called the other day to tell my wife that they got her husband pre-approved for a home loan and they plan to buy a new house in only her husbands name and let the house in her name go into foreclosure. To me, this sounds pretty crazy and I am certain it must come with consequences. They apparently feel like they are going to come out smelling like roses with only her credit being trashed for seven years. I have my suspicions of what really will happen but I was hoping that an authority might be able to weight in here. Thanks! One thing no one has touched on is that if they let their original house go into foreclosure will they be on the hook for whatever the bank loses on the deal? If so is bankruptcy and option for only her, so it wouldn't affect her husband or their new mortgage?  more

Resolved Question: Should I refinance my home to get these newr rates? ?

I bought my home 8/2008. My first payment was 10//2008. My mortgage consultant offered this refinance opportunity to me when the rates dropped earlier this week because I have a VA loan. I am currently @ 6.6% and can get 5.25% now. It's a nice savings and all the math shows I save big time since I plan to stay here well over 5 years., but people keep telling me I will add more years to my payment. My consultant says I won't as long as it is the same loan amount and I because I just purchased, so I haven't really invested anything. The only thing I am having to pay is closing, $1500. What should I do?  more

Open Question: i need a summary of this article plz help me?

The Treasury's potential new plan aimed at lowering rates on 30-year fixed mortgages by more than a full percentage point is more good news for builder stocks. Already, the refinancing frenzy sparked by the Federal Reserve's plan to buy $600 billion of mortgage debt sent share prices of home builders soaring. The Dow Jones Wilshire Home Construction index is up 27% since the Fed's announcement a week ago Tuesday. "Lower mortgage rates and improved affordability are the key to sales," said Credit Suisse Group analyst Dan Oppenheim. He upgraded his ratings on luxury builder Toll Brothers to "neutral" from "sell" partly because, he wrote, he believes the government move will help home sales bottom in 2009. Still, the underpinnings of housing demand remain shaky. Unemployment is rising most among an important segment of first-time home buyers. Among 25- to 34-year-olds, unemployment rose to 6.7% in October from 6.1% in September, compared with a rise to 6.5% from 6.1% among all workers. Analysts expect Toll to report a loss of 46 cents a share when it reports fiscal fourth-quarter earnings Thursday, marking a small improvement from its loss a year ago. Toll's customers aren't typically first-time buyers. But as job losses mount, there are fewer buyers for their existing homes. The government's moves also are unlikely to restore loose credit standards that allowed millions of renters with shoddy credit and scant income to qualify for mortgages. That segment of demand may not return for years. Home-builder stocks typically rebound several months before the housing market bottoms, but the deteriorating economy is pushing the bottom further away. This rally may prove premature. Consumer-Credit Rate Is Expected to Fall The government is targeting not just mortgages, but all forms of consumer credit. The Fed on Friday will release October consumer-credit data, excluding mortgages. Economists, on average, think credit fell at a 1% annualized rate from September, which doesn't sound half-bad, considering credit was in the teeth of a profound crunch. Consumer credit has held up surprisingly well, partly because many households have financed day-to-day purchases with credit cards. That trend is losing steam. J.P. Morgan Chase economists expect consumer savings to rise in 2009 to more than 5% of disposable income, from roughly zero at the start of 2008, the biggest such swing since World War II, according to J.P. Morgan economist Joseph Lupton. That will be accomplished partly by a retrenchment in consumer spending and in credit. J.P. Morgan expects consumer credit excluding mortgages will sink 15% next year, also unprecedented since World War II. But such credit is only a small part of total household indebtedness; mortgages are the bulk. Without a rebound in stock or home prices, it will take years for consumers to clean up their balance sheets. -- Mark Gongloff  more

Resolved Question: How should I finance a 2nd home @ the shore?

I want to buy a 2nd home at the shore, and am trying to think of the best way to finance it's purchase. The price for the 2nd home is $300K & I have $20K in hand for a downpayment (but that's not even 10% down!). My current residence is appraised at $400K. Currently, I still owe $150K on my fixed, 15-year mortgage (10 years left til paid off). The rate on that mortgage is 4.625%, which is unheard of & likely to not be approached any time soon. Any thoughts on how I can finance the purchase of the 2nd home without throwing myself into a precarious situation? Many thanks, Puznik  more

Voting Question: Will mortgage rates go up?

I am currently selling my home and purchasing a new one. I locked in my rate at 6.5% and see that they are now down to 5.5%. I can re-lock my rate which will cost me $1200.00 and it will be good for 60 days or I can wait until December 30th when my rate runs out and submit another application to get approved again. If the rates are higher at that time I wil have to pay $600.00 to keep my current 6.5% rate. With the way the market is down would it be smarter to re-lock now at 5.5% or would it be smarter to wait until December 30th and just assume the rates are going to stay low? If I wait until the 30th I will not have to pay anything to reapply and I have no current offer on my home so I will not be closing by then.  more

Resolved Question: Did Obama voters do there home work before they voted?

In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers. At the same time, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.[8] http://en.wikipedia.org/wiki/Fannie_Mae http://www.youtube.com/watch?v=8sj91NH5fvw Don't get me wrong I think it is great we have a black president and it is about time but this seems to be looking more like a Democrat clean up than change racist turds -my daughters boy friend is black...you need to watch how you throw that card around The Man from A.C.O.R.N. did you read that before you posted it???LOL another good reason for a Dem clean up crew You're proud of Gitmo, Blackwater, Abu Gray, Patriot Act, and Katrina? NO not a bit and there are points of all the Pres that I don't agree with Sageandscholar- did read that? He is trying to fix the issue but no where did he say I caused that But Thanks another Good one to use Nicole 5 I said don't call me a rasist Just because it is on you tube does not mean it is not his own words.Matter of fact nobody is talking here but him.  more

Voting Question: Should I foreclose or file bankruptcy?

My husband and I purchased a home in Florida in May of 2006 for $310,000.00. We paid $30,000.00 down. We didn't have the best credit score so we only qualified for an adjustable rate mortgage only so we were told. We were also told our pymt. would be around 1,800.00 but when we got to closing it was 2,200.00. With the latest interest rate increase and increase in property taxes our mortgage payment is now $2,900.00. The property taxes went up in 2007 and our interest rate keeps going up and is now at 9.5%. I lost my sales job in May due to our economy and cannot even get an interview for a new job. We can no longer make the payment and have been trying to sell the house but property values have gone down so much that our realtor is telling us we may not get what we owe for it if we are lucky enough to get a buyer. It has been on the market 10 weeks and it has shown 2 times. I have contacted the mortgage company to ask if they will lower the int. rate and they told me to write a letter to request this and they would get back to us with an answer in 90 days. 90 days will be too late. My question is...do stop making the payments all together and foreclose, or make a payment every two months or file bankruptcy? Will I ever be able to get another mortgage in the future? We feel so trapped and don't know what to do.  more

Resolved Question: HOME BUYING QUESTION ?

A potential home buyer has a annual income of 40k. Assuming an interest rate of 7%, a mortgage term of 15 yrs, an affordable monthly mortgage payment of $850.00 and a 10% down payment, what is the affordable home purchase price?  more

Resolved Question: Whose fault is the economic crisis anyway?

So let’s look at how we got here: ILLUSIONS Big part of what makes the American Dream is hope. However unrealistic, uneducated, and misinformed choices replace hope with illusions. Buyers had the illusion that homes would always keep increasing rapidly in value. However, they failed to understand that the real estate market has cycles. Some of the factors that create a change in the market are increased amounts of supply or demand, deregulation of the financial industry, easy and available credit, low interest rates and much more. People who bought homes they could not afford did it because they saw an opportunity to “invest” their life savings and achieve the American dream. They viewed this opportunity as attainable because banks made it possible, unscrupulous agents/brokers made them believe it was possible, and because they lacked the knowledge necessary to understand the responsibilities, risks and benefits of owning a home. Other illusions buyers had was their wages. The had the illusion that their wages would go up enough year after year to cover their ever increasing debt due to a lavish life style. This illusion, the lack of financial education and self-control allowed for people to live well beyond their means. Today people, banks, and our government are drowning in debt. CREDIT Competition in the market forces business to improve on their products and allows the consumer to purchase those products at affordable prices. However, competition between banks in a booming economy and low interest rates created a credit bonanza. Instead of banks improving on their products and services, they began utilizing creative financial tools to attract more borrowers. They also lend money to risky borrowers with little regard of their qualifications. Anybody that had a pulse could literally get a loan. Banks can’t accommodate the demand for credit only with their money reserves. So if they want to lend more money, they sell these mortgages to commercial banks and Wall Street lenders. Financial Crisis: Who's Fault Is It, Anyway? Doesn't matter. Because just about everyone is to blame. Republicans opened the door through debt-based credit derivatives and deregulation. Democrats further contributed by turning a blind eye to Fannie and Freddie and insisting that even those who couldn't really afford mortgages be allowed to get them. The Bush Administration touted consumer spending as a means to boost the economy, and encouraged reckless consumer behaviors with billions in "stimulus"money, all while fueling the national debt through a disastrous war and tax cuts for people who don't really need them. And, of course, greedy banks and mortgage lenders went along, doing their best to bilk whoever came through door for whatever they could get -- before passing the risk on to equally greedy investment banks and hedge fund managers. Consumers came along for the ride, abandoning reasonable financial practices and using credit to fuel materialism -- as well as making poor decisions by buying homes they couldn't afford with "creative" mortgage financing. Nearly everyone shares some of the blame. This is not the time to bicker over who is most at fault. It doesn't matter. The past is past. It's time to move forward and fix the problem. REALLY fix the problem. With practical solutions (that's right, follow the link for just one alternative -- and better IMO -- solution) that don't involve throwing a large, arbitrary amount of money at the problem. This is something that requires measured thought. And a change in how our society now views debt, money and the economy. There's no reason to rush into a bailout plan right now. Instead, a little more analysis is needed.  more

Resolved Question: Inflation??????????....................?

The inflation rate was expected to be 3% per year, but in fact the price level increases at 6% per year. Consider the impact this would have on the following groups: I. A family paying $600 a month on a 30-year mortgage at a fixed interest rate II. A bank that has issued 30-year mortgages at fixed interest rates III. Workers whose wage contracts have cost-of-living adjustments tied to the Consumer Price Index Which of these groups is (are) hurt by this unanticipated inflation? Note that a fixed rate mortgage is simply a home loan with a nominal interest rate that does not change over time. A. I only B. II only C. I, II, and III D. I and III E. III only F. I and II G. II and III Which of the following are costs associated with inflation? I. The loss of real purchasing power due to rising prices II. The resources used in changing prices, which are often referred to as menu costs III. The wasted time and effort associated with people trying to reduce the amount of money they hold IV. The misallocation of resources due to relative price variability A. I, II, III, and IV B. I, II, and IV only C. II and III only D. II, III, and IV only  more

Resolved Question: Macroeconomics q's.........?

The quantity equation of money is M x V = P x Y, where M is the quantity of money, V is the velocity of money, P is the price of output, and Y is the amount of output. 6.2. If the velocity of money is constant and money is neutral, an increase in the money supply: I. Increases nominal GDP II. Increases the price level III. Increases real GDP Which of the above statements best completes the sentence? A. I only B. I and III only C. III only D. II and III only E. II only F. I, II, and III G. I and II only 8. The Fisher effect is based upon the neutrality of money, and it states that, in the long run, as the growth of the money supply increases: A. Real interest rates increase. B. Nominal GDP increases. C. Real GDP decreases. D. Nominal interest rates increase. Which of the following are costs associated with inflation? I. The loss of real purchasing power due to rising prices II. The resources used in changing prices, which are often referred to as menu costs III. The wasted time and effort associated with people trying to reduce the amount of money they hold IV. The misallocation of resources due to relative price variability A. I, II, III, and IV B. I, II, and IV only C. II and III only D. II, III, and IV only The inflation rate was expected to be 3% per year, but in fact the price level increases at 6% per year. Consider the impact this would have on the following groups: I. A family paying $600 a month on a 30-year mortgage at a fixed interest rate II. A bank that has issued 30-year mortgages at fixed interest rates III. Workers whose wage contracts have cost-of-living adjustments tied to the Consumer Price Index Which of these groups is (are) hurt by this unanticipated inflation? Note that a fixed rate mortgage is simply a home loan with a nominal interest rate that does not change over time. A. I only B. II only C. I, II, and III D. I and III E. III only F. I and II G. II and III  more

Resolved Question: Home Buyers took a gamble...so their loss?

Of course I feel bad for anyone that loses their home, BUT I'm so tired of hearing everyone whine and cry about losing their homes and going into foreclosure. We bought our house 3 years ago and locked in a 30yr fixed rate mortgage. Interest rates were 5% at the time and we felt that was superb. Everyone at that time that purchased an ARM and is now losing their home pretty much needs to suck it up in my opinion. Isn't getting an adjustable rate mortgage a gamble? You know that going in...I don't understand why these people are supposed to get a break on their loans. I asked a Q about gas prices being so low, and people want to bring up home foreclosures there...it comes up on nearly every topic now. Buying my house was the scariest thing I've ever done in my life...it's HUGE...there was no way that I would go in blindly listening to some lenders hype; you have to be smarter than that to make it in this world. I feel bad for the people that have lost their jobs and are losing their homes...that can happen to any of us :)  more

Resolved Question: Can you purchase a home for under value, but get a mortgage for the actual value?

I am looking to be a first time home buyer, but have a decent amount of credit card debt. I have a 730 credit rating and a solid job. In this economy it is very possible to find a home for under market value. I am trying to find out if it is possible to still get the mortgage up to the market value of the home and then pay off my debt with the difference. Then would it be possible to immediately refinance?  more

Resolved Question: what types of home loans can we get?

I'm trying to do research on home loans and purchasing a home. we have good credit up in the high 700s. First time buyers...some questions to get started... 1. What loans are best? 2. which ones to watch out for? 3. are there things real estate agents or mortgage companies try to charge you for that they shouldn't? 4. can you get a home loan for more than the home is worth and use the extra money for other expenses? like furniture and other things for the home. 5. Tips and tricks to make sure we're not getting taken for fools? 6. what do we need to qualify for a good interest rate? 7. how much could we get? Any other info you can give would be awesome! thank you very much!  more

Resolved Question: [Help} Decision analysis Case study ?

Billy Tan just graduated with a Mechanical Engineering degree and secured a new job with a starting annual salary of $36,000. There are a few things that he would like to do with his newfound “wealth.” As a fresh graduate, he needs to begin repaying his student loans (amounting to $20,000) and he also likes to reduce some outstanding balances on his credit cards (amounting to $5,000). Billy also needs to purchase a car to get to work and would like to put money aside to purchase a condominium in the future. Last, but not least, he wants to put some money aside for his eventual retirement. He would like to do some financial planning for which he has selected a 10year time frame. At the end of 10 years, he would like to have paid off his current student loan and credit card debt, as well as have accumulated $40,000 for a down payment on a condominium. If possible, Billy would like to put aside 10% of his take home salary for retirement. He has gathered the following information to assist him in his planning: • Student loans are typically repaid in equal monthly installments over a period of ten years. The interest rate on Billy’s loan is 8% compounded monthly. • The monthly minimum credit card payments are usually computed using a 10year repayment period. The interest rate on Billy’s credit card is 18% compounded monthly. • Car loans are usually repaid over three, four, or five years. The interest rates on a car loan can be as low as 2.9% (if the timing is right) or as high as 12%. As a firsttime car buyer, Billy can secure a $15,000 car loan at 9% compounded monthly to be repaid over 60 months. • A 30year,fixed rate mortgage is currently going for 5.75% to 6.0% per year. If Billy can save enough to make a 20% down payment on the purchase of his condominium, he can avoid private mortgage insurance that can cost as much as $60 per month. • Investment opportunities can provide variable returns. “Safe” investments can guarantee 7% per year, while “risky” investments could return 30% or more per year. • Billy’s parents and older siblings have reminded him that his monthly takehome pay will be reduced by income taxes and benefit deductions. He should not count on being able to spend more than 80% of his gross salary. Additional requirements: a) After Billy’s car is paid off, he plans to continue setting aside the amount of his car payment to accumulate funds for the car’s replacement. If he invests this amount at rate of 3% compounded monthly, how much will he have saved by the end of the initial 10year period? b) Billy has planned to have $40 000 at the end of ten years to place a down payment on a condo. Property taxes and insurance can be as much as 30% of the monthly principal and interest payment (i.e. for a principal and interest payment of $1000, taxes and insurance would be an additional $300). What is the maximum purchase price he can afford if he would like to keep his housing costs at $950 per month? c) If Billy is more daring with this retirement investment savings and feels he can average 10% per year, how much will he have accumulated for retirement at the end of the 10year period? As Billy’s friend, you have been asked to review his financial plans. How reasonable are his goals? Support your findings with appropriate computations using Excel and prepare a Powerpoint presentation for your client. State your assumptions clearly. I need ur help . thx  more

Resolved Question: Is it possible to purchase investment property with no money down?

I have recently moved and was a victum to an adj rate mortgage. Now I am renting for the first time in 14 yrs. My family has agreed to purchase a home for myself with it in their name. We have been checking and for them to purchase the home it is %20 down on investment property? There credit is about 695 so a loan is real possible. We are wanting a way to purchase an $80,000 with minumun money down if possible.  more

Resolved Question: Did you know the New York Times warned us about our economic crisis in 1999?

If you think Bush caused our economic crisis then have you read this article put out by the New York Time article? Fannie Mae Eases Credit To Aid Mortgage Lending By STEVEN A. HOLMES Published: September 30, 1999 In a move that could help increase home ownership rates among minorities and low-income consumers, theFannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.'' Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market. In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescuesimilar to that of the savings and loan industry in the 1980's. ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.'' Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped. Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings. Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites. Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University 's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent. In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent. Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings. In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups. The change in policy also comes at the same time that HUD is investigating allegations of racial disc  more

Resolved Question: Why did this insurance agent try to push me into buying an expensive alarm system I don't need?

I just bought a homeowner's insurance policy for a house my husband and I just purchased. I bought our policy over the phone from a well respected company I will not mention because of their good service overall. The agent I dealt with was absolutely insistent that my husband and I install a monitored home security system in our house because we would get (a rather paltry) discount on our policy. I tried to explain to the rep that paying for the system, including monitoring would never pay off even if we were robbed because we don't have many things someone would want to steal. Other than an off brand flat screen TV (that's chained with a lock under its base to a very heavy solid wood TV console and we're even thinking about attaching that to the floor joists), an inexpensive DVD player, a shelf of DVD's mostly bought from the bargain bin at Wal-Mart and a couple of cheap laptops (that don't even have Windows installed on them, we're Linux users) there's not much of value. She kept saying that what would we do if we were hit by $20,000 in loss from a burglary. Including a motorcycle and 2 cars (all insured for theft); we would be lucky if everything we have to our name, other than the house is worth that much! Plus, we live in a rural area in Alabama with a low break-in rate; I checked county crime stats for the past 10 years and we're well below the national average. The nosy neighbors don't hurt either :) In order to break into the house you would have to get through a standard door lock, two deadbolts on each solid core security grade entry door, various window locks and avoid setting off wireless threshold motion sensors on all exterior doors and windows that let off an ear drum bursting screech that would deafen anyone within 100 feet. I work from home so I'm literally in the house all day and anyone dumb enough to break in would run a pretty high risk of getting a .22 shoved in their face anyway. The rep was still insistent that we "needed" an alarm even after hearing all of that. I couldn't get it through her head that it doesn't and probably will never pay for me to own an alarm system. She then started going over my auto policy and mentioned that it would be a wise idea to put a Lojack or Onstar system on my two vehicles because of another paltry discount! My husband and I own a 1992 Pontiac Bonneville and a 1999 Dodge Dakota pickup; which are probably the last vehicles anyone would want to steal. She just didn't get it that some people live frugally and only buy what they actually need. She also seemed to take great offense when I told her that I thought it was dumb to spend $1000 on an alarm system, plus monitoring fees to protect a few thousand dollars worth of stuff in a low crime area in a house thats already locked tighter than Fort Knox and practically under armed guard! My dad's obsessed with home defense so I learned how to use a gun when I was 14. I'm 22 and this was by far the most annoying experience I've had in the whole home buying process! I would have hung up on her but I needed the insurance paperwork sent to my mortgage company before the end of the business day. The insurance company I'm using doesn't even have any connection to these other companies whatsoever! I don't get it. Is this woman completely crazy?  more

Resolved Question: I have a fixed rate on my home but it is no longer worth what i purchased for..What can i do? Helpp?

I purchased home about 1yr ago for 260,000 but no only worth about 150,000 I have a fixed rate and are able to make payments on mortgage but I just think it is unfair.. Is there anything that could be done or I am just screwed...I thinking about just letting it go and mess up credit..  more

Voting Question: I'm in love & I want to get married; but my partner has a checkered financial past & I want to protect myself?

I have worked very hard to get to where I am, graduated college a few years back with two degrees, worked throughout - have great credit and no debt other than finishing up with student loans. I have my own business, and while I don't make a lot of money it's enough for both of us to live on so we have been living together for about a year and a half. During that time I have been paying all the bills and rent so that she could start repairing her credit and collections from a few years of irresponsible living beyond her means in early 20s. Her car even got repossessed at one point before we moved in together, but she has been doing great since and we've managed to live well though very meagerly. We have bought a car together with both names on the title which I didn't mind doing even though we did not contribute equally (I paid about 90% so she could save to take care of debts) and I cover all car insurance premiums with both our names on it. I love her very much and we have a baby son together, she has been staying home to take care of him and went to working only part time as she loves being a mom and finds her job not satisfying. We have a joint checking account which we share for groceries that I put a certain amount of money in and then each of us is free to use the funds for food however we want as long as we stay within budget. It has worked out pretty well, but there is one big thing that I'm still very reluctant to share and that is ownership of the house I bought while we were living together. It's an investment property as well as our primary residence, and I've become the property manager. After living together for almost a year, a situation came up where I was able to purchase the multi unit building we lived in and we talked it over and so I did back about 8 months ago (my name only on mortgage and deed) with considerable loan from parent to help with down payment that I will eventually need to repay. I don't want to have to have a prenup when I ask her to marry me, as I believe we have a strong family right now and can't see myself ever wanting to be with anyone other than her - we have a beautiful son together and I know she wants to get married at some point as do I. it's obviously not the most romantic way to go about things either, and I could see how having a prenup written up could be viewed as planning for our relationship to fail which I don't want her to think I am doing. Still, she like most people is no saint - has had emotional problems that affected our relationship early on and problems with alcohol in the past (which we've also talked about) so while things are great now I really can't predict how things will be in 20 years. At one low point I made it known to her that if she continued to choose alcohol over me then that would mean the end of us, and thats the way I still feel especially when I think of our young son. Anyways, I don't want to give the wrong impression and I feel a bit silly even writing this - she is wonderful I do view her as my life partner. But as I'm getting more serious about wanting to marry her and reading about community property law some questions keep coming up and I need answers to assure I'm doing the right thing. 1) If I bought the house before we were married, but while we still lived together within the same building I was purchasing how would the courts view that? We were cohabitating and already had our son at that point. As I said again, she has never contributed a cent to the mortgage payment and I wouldn't ask her to. 2) I never asked her to be a stay at home mom, but I realize she is sacrificing potential income to do it. She never finished college however and her job wasn't highly paid nor did she enjoy doing it full time. I think we both view the tradeoff of the traditional arrangement (man brings home the bacon, woman homemaker) a fair one...we both agree that we didn't want to send our son to childcare and to this day no one has watched but one of us or a family member. But I still wonder if the courts would view her "income sacrifice" as a reason to warrant giving her partial ownership of the house (even though if we worked out the numbers I'm fairly certain she's better off both financially and emotionally under this arrangement than if she worked full time and we had to split the cost of living that I now cover such as childcare / food)? 3) Once we were married I believe we have joint credit, since hers is way below mine (which is about 780) what would that do to my credit rating. My plan is to eventually get our family out of the multifamily into something with more space and privacy, but still hold on to that investment property as a side business. So within a few years I will be looking at getting another house (possibly with both of our names on depending on circumstances - I'm open to it and in no way against owning property together if.) We've been making her payments to get her cred sorry, it didnt all fit heres the last little bit - THANK YOU : ) .....3) (cont) We've been making her payments to get her credit score back up, but it's gonna take awhile from the damage she did to it before I knew her, so from a realistic standpoint is there a situation where we may want to wait to get married until after our credit is combined (so as to get the best mortgage)? 4) Finally, the biggest thing that scares me overall is if we get married and then she falls back into her old lifestyle at some point which would mean our paths would have to go separate ways. Having given you some background info, whats the best way to ensure that I would keep the house should the worst happen which I dearly hope we never have to face!!! ? Do you think I absolutely need a prenup to ensure the worst won’t happen or will the state laws cover me? 5)Does anyone know of good books or websites to research this further?  more

Voting Question: Am I a victim of Predatory Lending?

When I was purchasing my home back in 2006 my realtor/broker told me that i need a down payment in order for me to purchase a home with 30 year fixed, so he suggested to borrow money of $148,500 from a private lender Tat Wong. That's why my 1st morgage came out to $346,500 and a second mortgage of $148,500. After a year, my realtor who's connected to the private lender took over the loan of $148,500 and added $500 on top of that loan and came out to $149,000 and started paying him $1308 monthly interest only. The rate is too high. and I think he's been making money out of me. If I cant pay he'll forclose my home. I am paying $2,276.26 on my 1st and $1308.00 on my 2nd. My mortgage payment is too high.  more

Resolved Question: should i let my home forclose?

here's the situation, i am 26, my husband and i are forced to file bankruptcy because he was laid off twice last year and has just been laid off again, we have a new baby and i was forced to take 3 months maternity leave from complications. one of our cars was repossessed, so our credit is going to be shot either way. we bought our home when i was 21, they approved us for a 200,000 loan. at the time i didn't know what i was doing and we purchased a home that cost that much. it has a fixed rate but the payments are 1500 a month. it is a 2 family and we get 750 rental income. it is a very large house and the utilities for one floor alone run us about 7-800 a month because of poor insulation and wiring,the home needs major repairs ( this is where i didn't know what i was doing when i bought the house.) it needs a roof, it has old siding, the second floor bathroom is gutted, there is major water damage to one of the rooms due to the leaking roof, we started renovations and didn't complete them because of finances so it needs major cosmetic work- it has old paneling and wallpaper in some areas of the house, old molding and plaster walls. old furnace, hot water tank the porch on the second floor is slowly deteriorating from water damage, since there is no awning above it and the previous owners had indoor outdoor carpeting on it.it is very weak and unsafe. the driveway is cracked and caving ( it is the size of 3 driveways. we fully intended to completely rehab the home when we purchased it and eventually use it as rental property. we would never get what we owed if we sold the way it is right now and we would need at least 50 grand to get it in selling condition. i still owe 192,000 and i am behind 4 payments from job loss. mortgage company is willing to work with me because of the bankruptcy but it would mean extending the loan and higher payments. i feel like i am drowning now! would it be better to just walk away from the property and claim it in the bankruptcy for a complete fresh start or would it be better to stay and try to fix it. i wouldnt even ask as i obviously know forclosure is never the best option but in my case with the house being worth so much less than what we owe what option be best for us in the long run. my primary concern is repairing my credit and creating a future for my family um i asked question for help not criticism. yes he did look for other employment and did do small jobs until he found something but a fast food job would not cut the 62,000 a year he was making as a machinest, with two kid, 2 car payments and other misc bills. and i was on bedrest the last 6 weeks of my pregnancy from incompetent cervix so how is that hard to believe and what reason would i have to lie. i am only here to get some feedback on what would be the best option for my family in the long term.  more

Resolved Question: Where did Bush get us?

I see the argument a lot, especially in places like Yahoo Answers and blogs but I have never really seen it backed up with examples or evidence. I can only assume that people are referring to the wars in Iraq and Afghanistan and our current economic status. I just want to give some perspective that I hope people take into account before bashing me, and Bush, and republicans in general so that I can really get some answers. I am still undecided on who I am voting for and have never chosen who I vote for based on party affiliation. I consider myself level headed and I try to understand situations before reacting. So, here it goes. President Bush took office on January 20, 2001. This was immediately following the dot-com bubble and the fall out created by it. Can't blame that on him. Also, less than 8 months later 9/11 happened as we all know. Aside from the conspiracy theorists, you can't blame that on him either. He immediately took action, as the nation wanted him to and not too long after Congress declared war in Iraq. Now, I THINK one of the things people blame on Bush is the whole thing about not finding WMDs in Iraq. I am fairly certain President Bush should not be held accountable for this. Everyone believed it due to faulty intelligence. I am not sure how that is his fault. In this argument I am also ignoring reports that we did in fact find WMDs in Iraq in the form of chemical weapons. Perhaps you can blame Bush for the fact that we have been in Iraq this long but in my humble opinion, destroying a country's government then packing up and leaving isn't exactly a good plan. We have to finish what we started and I think we will prevail in the end. We have to be patient, this is a new kind of war that has never been fought before. Keep in mind that in some months more people die in Detroit due to gang violence (one city) and die in Iraq due to the war (an entire country that is at war). As for the economy, I think the argument is that Bush somehow got us into this mess because he has been president for the last 8 years. According to one of my economics professors the blame can't be placed with any single person due to the fact that we got to this place by 30 years of deregulation of our financial systems. The guy is an economic historian and I believe him over most people who will respond to this post anyways, so lets assume that that part is not up for debate. Now in doing some reading I came across an article in the NY Times that leads me to believe if people do want to point the finger at one person for causing this Bush should not be that person, but Clinton should. The almost prophetic article starts out with the following. In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.'' In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's. ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the governme I just noticed my post got cut off..... oh well. Looks like people are still choosing ignorance. If you want to read the article go to NYtimes.com and search for "Clinton Fannie Mae" and read the September 30, 1999 article.  more

Resolved Question: How to raise credit score with credit cards?

Is it wise to decrease your credit limits on credit cards that are seldom/never used? I know not to close the accounts because it will hurt my credit score, but if I just lower my credit limit, as long as I am still under the magic 10-30% usage of my total credit limit, can that actually help? I have heard that having too much credit can be considered a negative. I am hoping to purchase a home within the next 6-8 months and I am trying to do what ever I can to increase my chances of a good mortgage rate. BTW, I have done the free credit reports, and everything is correct. I have paid off most of my credit debt over the last year, and I am currently at about 15% of my total credit limit. I do have too many credit cards (6), but I am afraid to close them outright. Of those six credit accounts, three are completely paid off and never used, the one I regularly use is paid off every two weeks, one should be paid off completely in a month, and the other is getting paid off before I start filling out mortgage applications. I also have student loans, and a car loan that I am currently paying off as well. Sorry if this is too much information, but I want anyone who can give me an answer to have the full picture. Any help is appreciated.  more

Resolved Question: Should I buy a single family home rental in CA or multiple sfh's in TX? Value and initial investments being =?

I'm considering buying some rental properties. I'm familiar with the California and Texas housing markets. I spend enough time in both areas where I could consider managing the properties myself to save the first month's rent plus the reocurring 5-10% of monthly rent. I want to put 20% down into each property to avoid PMI. Woodland, CA near Univ of CA Davis, Merced near Univ of CA Merced, San Diego near Naval Base SD, San Antonio near Fort Sam are some of my target markets. If property value, initial investments and mortgage interest rates being equal, should I purchase a single property in CA or multiple properties (same value) in the TX market?  more

Resolved Question: How do I refinance when my mortgage is more than the property value.?

My husband & I purchased our condo with two loans from Bank of America: a 5/1 ARM @ 5.25% and a 2nd mortgage @ 6.75%. I would like to refinance our mortgages before the rates adjust. However, the value of our home has decreased over $100K. I have called Bank of America to get a loan modification and the woman I spoke to said we do not qualify. Is anybody else having this problem and how did you get a refinance?  more

Resolved Question: How do I quell my husband's anxieties about a home we're buying?

My husband and I just signed a contract to purchase a 1600 square foot ranch style home on 1 acre of land in the hills north of Huntsville, AL for $105,000. The house is very well kept and only needs minor cosmetic repairs that mainly consist of new carpet and paint in the bedrooms and formal living room. Other than some outdated kitchen appliances the house is in great shape. The seller is a landscaper so the property also has a beautiful front and back yard. The sellers also have done significant cosmetic work to the kitchen, family room and dining room. I'm talking new laminate floors, ceramic tile, paint, lighting fixtures, counter tops and more. The house also has a fantastic view of the mountains in the distance. We live out in the sticks so we only have one neighbor next to us. My husband is nervous because his parents (mainly his mom) keep telling him that we "over paid" for the house. They live in Delaware (where we just moved from) and their excuse is that a few years before the housing boom they managed to buy 21 acres of old logging land for $50,000 at a tax auction; where they built a 2000 square foot 2 story home for an additional $125,000. The truth is, the old logging land was expensive to grade and required a variance from the local authorities to put in the septic tank. They inadvertently hired one of those mass-production type contractors who slaps up houses with the cheapest of materials so at 6 years old their house is basically falling apart around them. The home we're buying was built sometime in the mid-eighties and feels very sturdy. My dad worked in the residential construction industry for over 30 years (mainly doing high end remodels on older homes) and thinks this house is a good buy for the price. He taught me how to spot potential trouble areas in homes when I was a teenager so its not like I'm a total moron when it comes to home buying. I'm having the home inspected tomorrow anyway so if there is anything major we won't get stuck with it, per our contract. My mother-in-law convinced my husband that we were also getting a bad deal because the house is selling for $105,000 but is estimated to be appraised at $115,000 to $120,000 (it was originally listed for $130,000, last year). She says "its not enough of a discount in this market". What she fails to realize is that there really wasn't much of a boom or even a bust in the area we're in. Home prices only increased slightly faster than the normal rate for the area and haven't taken much of a dive since the bust. All she's doing is making my husband upset about our first home purchase. She also has this crazy idea that we "need" a lot 5 acres or bigger for our first purchase. Honestly, we would not be able to afford a house as nice as the one we're buying with a lot that size. I'm not comfortable taking on a $900+ a month mortgage at 22 years old. We're going through a several state sponsored first time home buyer programs (USDA Rural Development Mortgage, Step-Up and Mortgage Credit Certificate program) in our state that will keep our mortgage at around $650 a month. Which is only $30 more than our current rent. How do I get my mother-in-law to understand that our situation is totally different than hers. My father-in-law had just retired from the Air Force after 20 years when they bought their first house. I'm 22 and my husband is 25 and we're buying for the first time, a totally different ball game.  more

Resolved Question: I really need help with this mortgage problem? ?

Kim and Karl purchased a home for $135,000. They made a down payment of $20,000 and took out a mortgage on the balance with an annual interest rate of 8% compounded monthly for 30 years. After 5 years they had the opportunity to refinance with an annual interest rate of 6.5% compounded monthly for 20 years. a.) What was their monthly payment on the 30-year mortgage? b.) What did they owe after 5 years of payments? c.) What is their new monthly payment? d.) If they had not refinanced, how much interest would they have paid on the last 25 years of the 30-year mortgage? e.) How much interest will they pay on the 20-year mortgage? f.) If they paid $2500 for fees to refinance, was it a good choice for them to refinance? Why or why not?  more

Resolved Question: Can someone help me with this mortgage problem?

Kim and Karl purchased a home for $135,000. They made a down payment of $20,000 and took out a mortgage on the balance with an annual interest rate of 8% compounded monthly for 30 years. After 5 years they had the opportunity to refinance with an annual interest rate of 6.5% compounded monthly for 20 years. a.) What was their monthly payment on the 30-year mortgage? b.) What did they owe after 5 years of payments? c.) What is their new monthly payment? d.) If they had not refinanced, how much interest would they have paid on the last 25 years of the 30-year mortgage? e.) How much interest will they pay on the 20-year mortgage? f.) If they paid $2500 for fees to refinance, was it a good choice for them to refinance? Why or why not?  more

Resolved Question: Annual interest on a mortgage? Help please? ?

Kim and Karl purchased a home for $135,000. They made a down payment of $20,000 and took out a mortgage on the balance with an annual interest rate of 8% compounded monthly for 30 years. After 5 years they had the opportunity to refinance with an annual interest rate of 6.5% compounded monthly for 20 years. a.) What was their monthly payment on the 30-year mortgage? b.) What did they owe after 5 years of payments? c.) What is their new monthly payment? d.) If they had not refinanced, how much interest would they have paid on the last 25 years of the 30-year mortgage? e.) How much interest will they pay on the 20-year mortgage? f.) If they paid $2500 for fees to refinance, was it a good choice for them to refinance? Why or why not?  more

Resolved Question: Breaking a verbal contract ?

I (well, myself with my spouse with our 3 kids,) was going to purchase a home from a sibling who lived approx 1,500miles away, moved into it, but I will not be signing a contract like they want us to. Originally I was to purchase it for a certain amount, then after living in it for about a month and a half, was told I’d be paying an interest rate on it as well. This wasn’t what we talked about before I moved, and was told to me in a quick, lets hurry and get it out kind of way (would have been fine if I was actually told before I agreed to purchase it.) My financial budget isn’t much, and I spent what I had to move, which they (sibling and spouse,) knew about and took advantage of, as we spoke about how the contract will be written up. I wasn’t given any say in it, and when I tried to put in my opinion I was told I can go ahead and back out now and find somewhere else to live, as they had someone else who wanted to buy it. We all knew I couldn’t just move again, I was close to broke etc. In other words I right where they wanted me to be, they knew it and I knew it. Before moving I also asked the condition of the place, which I was then told the biggest chore would be putting new tile on the kitchen floor. I went into detail, but other then “cosmetic” work like painting, there was supposed to be nothing else. I get here and there is a funny smell in the place (mold/mildew I’m sure now,) in the bathroom leading into the master bed/laundry area there are soft spots in the sub floor, which have to be replaced. The plumbing needs to be replaced/repaired throughout (winter is coming and pipes are exposed/leaking all over and it is pretty severe in winters here with snow etc,) as well as the electrical and insulation. There is rot on the outside that has to be fixed, and it all has to be sealed around windows and doors. The roof needs to be repaired, and although it doesn’t leak now, it’s just a matter of time till it does again (I was told the roof was fine.) The water heater is going and the bathroom needs to be redone to prevent more rot and ruin from water damage. Basically a classic major fixer upper that was supposed to be cosmetic work only. They tried to deny knowing about how bad it was, but there is just too much for them not to have known, and we also have talked to the neighbors a bit and got some snatches of what my sibling was fixing and having problems with while they lived here. Because of another situation with our childcare (without notice we were told the night before we needed to find child care somewhere else, even though we both had work the next day,) we haven’t told them yet we were moving, and just found a place to rent, which we will be moving into it this week. Basically we were worried they would kick us out, or give us too little of a notice to find somewhere else to live, and we have small babies and can’t afford to not have back-up place to move. We paid for this month, but don’t plan to pay for next month as we have small budget we’re still working with. What is your opinion on this situation, and do you think it is wrong to only give them a 23 day notice that we’re not buying their place and have moved out? In the contract they wanted us to sign also states that they can take a mortgage out on the place at any time while we are still paying on it, and in so many words if they fail to pay their mortgage on it, we are basically f***ed. They also have the right, and any time, with or without “buyers” agreement come and view the property, inside and out. They also tried to have us pay the taxes on the property right now, that are actually a year behind (talked to the county and they explained the current taxes due and for the year 2007, and if we’re are purchasing, we don’t actually start paying till a year from now.) They refuse to have our name on the property, and we found out there is a lien on it as well. I knew this, my hubby warned me, but we were in a tuff place and this was our way out. But yes, doing business with friends and family can teach you, and make you see some things you never wanted to about that person or yourself. I never thought I'd be able to do something like this to someone, especially now that they're partially depending on the income from us. Well, my other sibling is telling me it's imature to not tell them sooner, that if they tried to kick me out I'd have a certian amount of days to get out. Shre doesn't undestand I don't want the worry of having to find a place in set amount of time with small children. Whats more is we plan to only be in tis state for another 4 months, and just about everyone wants a lease of a year, and a few others want 6 months. Actually, I am very thankful for caller ID. I'm tired of being treated like I'm some piece of trash because we don't have a lot of money for freetime activities. I'm either going to be accepted for who I am, how I am. I refuse to act or be someone I'm not, just because thats how someone wants me to be! Hmm, nothing signed, just verbal.  more

Resolved Question: Breaking a verbal contract for a home?

I (well, myself with my spouse with our 3 kids,) was going to purchase a home from a sibling who lived approx 1,500miles away, moved into it, but I will not be signing a contract like they want us to. Originally I was to purchase it for a certain amount, then after living in it for about a month and a half, was told I’d be paying an interest rate on it as well. This wasn’t what we talked about before I moved, and was told to me in a quick, lets hurry and get it out kind of way (would have been fine if I was actually told before I agreed to purchase it.) My financial budget isn’t much, and I spent what I had to move, which they (sibling and spouse,) knew about and took advantage of, as we spoke about how the contract will be written up. I wasn’t given any say in it, and when I tried to put in my opinion I was told I can go ahead and back out now and find somewhere else to live, as they had someone else who wanted to buy it. We all knew I couldn’t just move again, I was close to broke etc. In other words I right where they wanted me to be, they knew it and I knew it. Before moving I also asked the condition of the place, which I was then told the biggest chore would be putting new tile on the kitchen floor. I went into detail, but other then “cosmetic” work like painting, there was supposed to be nothing else. I get here and there is a funny smell in the place (mold/mildew I’m sure now,) in the bathroom leading into the master bed/laundry area there are soft spots in the sub floor, which have to be replaced. The plumbing needs to be replaced/repaired throughout (winter is coming and pipes are exposed/leaking all over and it is pretty severe in winters here with snow etc,) as well as the electrical and insulation. There is rot on the outside that has to be fixed, and it all has to be sealed around windows and doors. The roof needs to be repaired, and although it doesn’t leak now, it’s just a matter of time till it does again (I was told the roof was fine.) The water heater is going and the bathroom needs to be redone to prevent more rot and ruin from water damage. Basically a classic major fixer upper that was supposed to be cosmetic work only. They tried to deny knowing about how bad it was, but there is just too much for them not to have known, and we also have talked to the neighbors a bit and got some snatches of what my sibling was fixing and having problems with while they lived here. Because of another situation with our childcare (without notice we were told the night before we needed to find child care somewhere else, even though we both had work the next day,) we haven’t told them yet we were moving, and just found a place to rent, which we will be moving into it this week. Basically we were worried they would kick us out, or give us too little of a notice to find somewhere else to live, and we have small babies and can’t afford to not have back-up place to move. We paid for this month, but don’t plan to pay for next month as we have small budget we’re still working with. What is your opinion on this situation, and do you think it is wrong to only give them a 23 day notice that we’re not buying their place and have moved out? In the contract they wanted us to sign also states that they can take a mortgage out on the place at any time while we are still paying on it, and in so many words if they fail to pay their mortgage on it, we are basically f***ed. They also have the right, and any time, with or without “buyers” agreement come and view the property, inside and out. They also tried to have us pay the taxes on the property right now, that are actually a year behind (talked to the county and they explained the current taxes due and for the year 2007, and if we’re are purchasing, we don’t actually start paying till a year from now.) They refuse to have our name on the property, and we found out there is a lien on it as well. Yes, I do feel bad and guilty. What I'm doing isn't the person I really am. Whats more is I moved here to get closer to my family, but instead I'm being told all the time what I'm doing wrong and how I need to live my life, how much older I look then my sibling who is older then me etc. Basically since moving here I've been attacked and treated like something is wrong with me because I'm not the person my sibling thinks I should be etc. It's tuff, but all I know is once we have a bit more saved up we're moving back to the state we came from :) Sunshine in the rain! Oh, I'm not worried about a legal issue, nothing was signed etc. to hold us liable for anything. I'm justhaving trouble with myself, that I'm doing this to them, or rather accepting that I can do something like this to someone, even if they are the ones to break the verbal contract first. Funny you mention the family/trust thing. The last talk we had on this before I moved, I told my sibling "okay, I'm trusting you on this." Go figure~!  more

Resolved Question: Are the democrats to blame for the sub-prime failure?

Amazing foresight!! Take a gander at this while they try to lay blame for the whole meltdown…9 years ago—this one is priceless and worth the read- right out of New York Times -------------------------------------------------------------------------------- September 30, 1999 Fannie Mae Eases Credit To Aid Mortgage Lending By STEVEN A. HOLMES In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.'' Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market. In moving , even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's. ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.'' Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the bor rower makes his or her monthly payments on time for two years, the one percentage point premium is dropped. Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.  more

Voting Question: If I purchased a home in 2004, and my house is now worth squat, will I qualify for a bailout, too?

I purchased a home in 2004 for $500,000. I put down $100,000 which was all the equity I had from the sale of my previous house which I had been paying on for 15 years. Now, not only is all that equity money gone, but now I have a $400,000 mortgage on a home that is only worth $150,000. I work 2 jobs so I can make my $2,000 a month payments. My mortgage rate is fixed and I have never missed a payment. WilI I qualify for a cheaper mortgage, too? BTW, I am not a minority, just a hard-working jerk. To clear up some confusion, here are more details. First of all, I live in San Diego where housing values have plummeted and much of the $2000/month goes to California property taxes. I am SO sorry I moved away from Iowa!  more

Resolved Question: Can I borrow money from my brother as an investment for him?

I am considering having my brother help out with the downpayment on a house that I will live in and solely own. His share would be $10,000. In return he will receive a yearly rate of return on his investment, with a payout at the end of the 10th year. I am guessing that a 10% annual interest rate would be attractive given the state of the stock market. This deal would be on the side and under the table so as not to create a Mortgage 2 on the property. Is the interest rate that I described acceptable...too much...too little? Here is an example that I've worked out: Purchase Price: $108,000 Down payment: $6000 In 10 years: Market value (2% per year incr.) $131,176 Mortgage Balance: $88,274 Equity: $42,902 Payout of $10,000 loan at 10% over 10 years = $25,937 Therefore, Remaining equity would be $16,965. I would be personally responsible for all of the mortgage P&I, taxes, upkeep etc. while I live in the property as the owner. Over 10 years: My current rent that I pay now would be: ($850 x 120mths)= $102,000 Over 10 years: The mortgage P&I + property taxes (estimated) ($841 x 120mths)=$100,920 So at the end of ten years, I will have paid out much the same, however...with the home ownership, I will surely have paid additional for upkeep/maintenance. However, I would also now have accumulated $16,965 in equity even after paying off my brother. Does this make sense....am I missing something? If anyone has any advice, I would really appreciate it! Thanks, I will use $6000 for downpayment and the rest to go to closing costs.  more

Voting Question: Is McCain starting to promise anything to try to win?

Is McCain starting to desperately promise anything without a lot of analysis behind it? Is he getting dangerously reckless? "Critics call McCain housing plan 'half-baked'" “It seems hastily put together … given the lack of detail, specificity, and overlap with existing programs,” added a Republican financial services lobbyist. Indeed, McCain’s announcement was accompanied by a fact sheet that raised almost as many questions as it answered. The campaign did post and e-mail a background document Tuesday night following the debate describing the plan, but it lacked specifics about how the program would work, exactly who would be eligible and how many people would be helped. The McCain campaign tweaked the document overnight Tuesday in a slight, but very significant way, removing a single sentence that indicated the government would buy mortgages from lenders at a discounted rate. The McCain campaign said the plan did not change and they merely edited out “language [that] was mistakenly included in the initial draft.” Nonetheless, with the sentence gone, the plan morphed into a shifting of $300 billion worth of losses to the taxpayers. McCain is proposing – it became clear Wednesday as the campaign talked about the plan – that the Treasury purchase bad mortgages at face value even though sliding home prices mean many homes are worth far less than what the government would pay for original mortgages. The plan is to retire the original mortgage and issue a homeowner a new, 30-year fixed-rate loan at interest rates just above five percent from the Federal Housing Administration. The shortfall between the new mortgage and the cost of the older, more expensive one would come from taxpayers. The new detail caused many experts to question whether the $300 billion price tag is too low. http://www.politico.com/news/stories/1008/14430.html  more

Resolved Question: Why don't people realize this economy is Clinton's fault?

The following is an excerpt  from an article that appeared in The New York Times on ***September 30, 1999 *** “Fannie Mae Eases Credit To Aid Mortgage Lending”, By STEVEN A. HOLMES Published: September 30, 1999 In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. Article was from 9/30/99. Bush didn't take office until 1/20/01. That's 16 months. And it took Bush 6 years to get the stuff done that Clinton did that led us to where we are now.  more

Resolved Question: Please Explain This To Me......?

McCain's American Home ownership Resurgence Plan wants the government to buy up bad mortgages to cut homeowners' monthly payments. Now if I were a homeowner who actually took an interest only loan, with full knowledge that "but for" creative financing I could not afford to live in a home well above my salary pay range I would probably like that deal. Fortunately, I am not. I am one of those Americans that worked hard to get my credit score high by paying my debt on time. When we looked to buy a home, I saw many I wanted to buy well above my pay range, but bought one I could afford with a 30 year fixed rate. My husband and I do without a lot of wants to take care of basic needs even with all our careful financial planning. We would not benefit from this plan in the least. What has happened to people taking personal responsibility? Why has the media only touted how lenders unscrupulously granted loans to people who they knew could not afford certain homes. What about homeowners? Who took these loans based on FUTURE salary. What about, homeowners who bought homes using creative loans and then took out a second to purchase new cars, new furniture etc.etc. When the real loan became due they had no way to pay. I don't mean to sound mean or callous but when is personal responsibility going to come to the forefront? I am sad about what is happening in our country, I feel indebted to this country, but I do not feel entitled to have more just because I am a American. I feel if you didn't earn it, you don't deserve it. Am I wrong? If so please explain. Thanks  more

Resolved Question: Explain this to me please....?

McCain's American Home ownership Resurgence Plan wants the government to buy up bad mortgages to cut homeowners' monthly payments. Now if I were a homeowner who actually took an interest only loan, with full knowledge that "but for" creative financing I could not afford to live in a home well above my salary pay range I would probably like that deal. Fortunately, I am not. I am one of those Americans that worked hard to get my credit score high by paying my debt on time. When we looked to buy a home, I saw many I wanted to buy well above my pay range, but bought one I could afford with a 30 year fixed rate. My husband and I do without a lot of wants to take care of basic needs even with all our careful financial planning. We would not benefit from this plan in the least. What has happened to people taking personal responsibility? Why has the media only touted how lenders unscrupulously granted loans to people who they knew could not afford certain homes. What about homeowners? Who took these loans based on FUTURE salary. What about, homeowners who bought homes using creative loans and then took out a second to purchase new cars, new furniture etc.etc. When the real loan became due they had no way to pay. I don't mean to sound mean or callous but when is personal responsibility going to come to the forefront? I am sad about what is happening in our country, I feel indebted to this country, but I do not feel entitled to have more just because I am a American. I feel if you didn't earn it, you don't deserve it. Am I wrong? If so please explain. Thanks  more

Resolved Question: Do I have the SOLUTION to the mortgage crisis?

First, I am not a socialist. Normally. Second, I think that I have a plan that would resolve the mortgage and credit crises and leave everyone a winner. 1. Government buys up bad mortgate debt (already happening). 2. Government buys up good mortgate debt at the borrower's option (if they want to participtate in this plan I have). 3. Government turns over to everyone a title, free and clear, of their home property. 4. Government imposes a tax of 50% of the typical mortgage payment the borrower had. This tax lasts until the principal (not principal + interest) is paid off. Note: for folks who were on floating interest rate loans, we'd pinpoint the standard payment before things went crazy, then make them pay 50% of that. Why this all works. A typical mortgage is 30 years and you end up paying about 3 times the price of your home, if you count the interest. If you could pay 50% of your monthly payment over 20 years, you'd cover the principal portion of your loan and still have plenty of cash left over to reduce other debt or to make new purchases. Think about it. Say your mortage payment is $2,000 per month and finances are real tight (you might have credit card debt too). If someone handed you your title and you took on a 20 year tax commitment of paying $1,000 per month, then not only would you have equity, but if you stayed in your home you would have the other $1,000 you used to pay in your mortgate freed up for other things. Is this socialist? Yep, a little bit, but perhaps a necessary move, a one-time event, to clean this mess up. If you hear either candidate propose something like this, you heard it from Mr. Freedom first. Think this might work? Thoughts? Matthew, I think this plan would kick the nation's economy into high gear and more than pay for itself over time. While I understand your point about folks being fiscally responsible, I do think that once in awhile, we need to "stand all the pieces on the chessboard back up." No, I think a clause is that if you sell your house, proceeds must satisfy your personal tax debt first. So you might walk away owning nothing and owing nothing.  more

Resolved Question: How can a Democrat read this article and not admit that this housing problem is Clinton's fault?

The article appeared in the New York Times on 9/30/99 during the CLINTON administration. Here's the link the the Times Website w. the article....http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=all “Fannie Mae Eases Credit To Aid Mortgage Lending”, By STEVEN A. HOLMES Published: September 30, 1999 In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.  more

Resolved Question: A CORRECT view of the BAIL OUT!!!?

I invested $50,000 with a company back in 2003....USA Capitol. It was mortgage related first deeds of trust. Maximum loan to value, 65%. All secured by 1st trust deeds. Well, for three years I received about $13,477 in interest payments.....In April of 2006, they filed for BANKRUPTCY......I still had over $36,000 in principal owed to me not to mention the interest. Since April of 2006, I have received $904.00 back on my principal. Pennies on the dollar Mortage Backed Securities......This is what our government wants to spend 700 Billion dollars on. On top of the Economic Stimilus $150 Billion, which went from each taxpayer who received their check straight to the oil companies, or utility companies. Then we add the 85 billion dollars for AIG's bailout, etc, etc, etc. I am up visiting a friend in the Atlanta area....She has 5 ducks and a goose. As we all know geese and ducks make a lot of noise when they are hungry....Every morning when I go have my cigarette outside, they start making noise....I throw them some corn, and they quiet down. I was thinking, this sounds awfully familiar to what is going on right now.....Lets have the goose take the role of the president, and the troubled finacial instutions be the ducks, they are screaming for their morning corn....(money).....and congress is the corn, (the money), they eat...... They quiet down, but they always want more, and more. And no matter how much you feed them, they still make noise. I am adamately opposed to this bail out, or financial rescue. 10,000 houses per day are going into foreclosure in this country because of the criminal acts of Wall Street investment firms. We need to immediatly help every American who is facing foreclosure, by keeping them in their homes regardless of the cost. The value of the securities which the government wants to purchase are worth as much as my investment in USA Capitol. PENNIES ON THE DOLLAR. I will never see my princpal returned to me, so why should we expect the government to see a return on their 700 billion dollar rescue plan? It is time for a serious reality check here, and help the Americans who are the backbone of this country, the ones who own their own business, the ones who got screwed on the what they thought were fixed rate loans, that have mysteriously turned to ARM's. What has happened to the people or firms who did this? Nothing. Call your congressman, all of them who live in your state of residence, and let them know how you feel. Let your voice be heard. These will probably be the most important phone calls you will ever make. Tony K  more

Voting Question: foolproof bailout plan.......why don't we, "taxpayers", just payoff everyone's home mortgage?.?

then, every homeowner that befits shall pay half of their yearly mortgage to the government, ie..taxpayer, this will allow banks to then offer low credit that must first be directed to new home buyers, thus eating up the glut of unsold homes. fair interest rates would secure these new homeowners in their purchases. existing homeowners would keep their homes at half the payment. we, taxpayers, would be investing in "hard assest" instead of ceo benifits. win, win, win, you silly people, the home is not for free, it's more like you get your home for "half", just about what it is worth. and you are not bailing out the ceo's you are investing in hare assets. no wonder the country is the way it is,,,,look what it has for citizens..... jeez is anyone here even paying off a mortgage?????? what a bunch of losers.  more

Resolved Question: When is most convenient to refinance a mortgage?

My husband and I purchased our home almost two years ago, since the housing market has been in the up's and down's, we were thinking about refinance our 30 years fix-rate mortgage so we could lower our monthly payments, we are ok right now, I work part time and my husband has a very stable off-shore job, but, we are expecting our third child, so we don't want to get stuck in-between, utilities bills, house note, regular expenses and car payments, so, is it to soon to refinance only after two years of acquiring the house? if not, what should be our first step in doing so? any information would be most appreciate it!! thanks!!  more

Resolved Question: Do you think the truth behind the bailouts?

are to help illegals keep homes they should not be allowed to purchase in the first place? Do you agree with Tom Tancredo on this issue? I do and illegals should lose everything! Bailout Could Help Illegal Immigrants Mon, 09/29/2008 - 11:17 — Judicial Watch Blog http://www.judicialwatch.org/blog/2008/sep/bailout-could-help-illegal-immigrants The massive government bailout of the nation’s financial system could help thousands of illegal immigrants who obtained home loans from banks that were encouraged to offer them by the federal agency in charge of preserving and promoting public confidence in the system. The controversial $700 billion bailout will offer foreclosure relief for those at risk of losing their homes and that includes thousands of illegal immigrants who got mortgages from U.S. financial institutions thanks to a push from Federal Deposit Insurance Corporation (FDIC), which began encouraging banks to offer services to illegal immigrants a few years ago. Headquartered in Washington D.C., The FDIC insures more than $3 trillion of deposits in U.S. banks and is managed by a five-person board of directors appointed by the President of the United States and confirmed by the Senate. In the last few years the agency succeeded in getting several large lending institutions to offer a variety of banking services to illegal aliens, including home loans. Now U.S. banks routinely offer services to people without Social Security numbers by accepting the Mexican identification called matricula consular to open accounts. Some states—like Illinois and Wisconsin—even used millions of dollars in public funds to provide low-interest home loans for illegal immigrants with no credit history or documentation in the U.S. The loan default rate among illegal immigrants is high because they are inherently unreliable, are prone to fraud and may be forced by circumstances to return to their home nation at any point, according to a congressman representing a state that operated a large mortgage fraud ring featuring hundreds of unqualified borrowers that used fake identities to get money. The veteran Colorado Representative, Tom Tancredo, wants to assure that the bailout, set to pass this week, doesn’t offer incentives for illegal aliens. In a letter to his colleagues in Congress, Tancredo asked that safeguards be included on the bailout plan to verify the legal residency and identity of potential homebuyers. This will prevent illegal immigrants from obtaining federally backed home loans and assure that U.S. taxpayers are not absorbing their debts or bad loans made by banks to illegal aliens. Could it be a coincidence that the area’s hardest hit by home foreclosures happen to be illegal immigrant sanctuaries like Las Vegas, large parts of southern and northern California and the famous Arizona sanctuary of Phoenix? source - alipac frag, once again you come up with lame excuses on illegals side, No matter what, illegals should not be allowed to own homes, point blank! they should receive no help. Yes the citizens should get help to save their homes, put illegals out of those houses and back where they belong. greasy - what do you think your posts from the racists pro-illegal sites are? little bit hypocritical aren't you! what ever, i am not - I gonna start another riot, but thanks for the compliment, I like what she has to say!! legal immigrants are welcome to buy homes, illegals are lawbreakers and deserve nothing but punishment and deportation!  more

Resolved Question: how much should closing costs be for refinancing a mortgage?

I owe about 142,000 on my house. I got a quote to refinance and the closing costs are nearly 6,000! This is comparable to what the closing costs were when I initially purchased my home. Should it be this much to refinance the mortgage? (There are no problems with our credit, just a normal refinance for a lower rate)  more

Resolved Question: What happens to a renter if their landlord defaults on a mortgage?

I've been reading about the Wall Street bailout for days. I've been trying to understand what caused it. Now I read an article in the Daily News and in Crain's New York that city renters could be next victims of mortgage mess. The articles goes on to say that "An increasing number of apartment complexes face possible foreclosures and thousands of city renters could be the next victims of the mortgage crisis housing advocates warn. At least 580 buildings containing 40,000 units have one or more factors that could lead to mortgage default, Crain's New York Business reported yesterday on its website. Private equity firms bought at least 90,000 affordable housing units in the past four years, many at inflated prices in badly leveraged deals, according to the Partnership to Preserve Affordable Housing. The Riverton apartments in Harlem and Stuyvesant Town on the East Side are both at risk, according to the Crain's website. Riverton's owners indicated last month that they were on the verge of defaulting. And Savory Park, a seven building complex in Harlem has been placed on a watch list. Appollo Real Estate Advisors and its partners bought the complex in 2006 for 175 million. Appollo refinanced a year later, increasing the debt to 367.5 million, the credit rating agency Realpoint reported. The agency called the risk of default on the load "moderate to high." Housing advocates told Crain's that buyers had unrealistic goals about rent increases. The same lenders caught up in the mortgage free-for-all in single family homes lent them money any-way." If these companies default on the mortgages (loans), what happens to the renters? What can the renters do? Can the renters do anything? I live in one of the housing developments purchased by Appollo Real Estate. What can the tenants do?  more

Resolved Question: Failed republican policies? democrats explain this article please!?

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1 Fannie Mae Eases Credit To Aid Mortgage Lending In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.'' lydia i can't your link has been deleted. john doe mccain please click on the link and look at the date on the article. 1999. Bush wasn't president.  more

Resolved Question: Is this a good time to make this real estate rental investment?

My husband and I got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. We live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. But after adding up all the extra costs we would have, the income we'd be getting from rent would only make us break even and wouldn't be worth it. There is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. And I was looking into maybe purchasing a vacation rental there. I found a property there we can afford. I called around to places that manage rentals of similar vacation homes. It seems comparable properties make between $28,000 - $29,000 a year -- this has the potential of being more profitable for us than a rental home, where there is month-to-month rent. Even after using all the funds remaining in our equity LOC, we'd still have over 50,000 of equity in our home. But I'm afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. We may soon get a notice, as others have that the bank won't let us have the funds they loaned to us from our home's equity. And with mortgage rates so low, it seems like now is a good time to jump on this opportunity. Yet, with a vacation rental, there's not a steady income like there would be in a rental home. And with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future. So, what do you think? Should we do it? Or let this opportunity pass us by, for now?  more

Resolved Question: Is this a good time to make a real estate investment?

Hi there - My husband and I got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. We live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. But after adding up all the extra costs we would have, the income we'd be getting from rent would only make us break even and wouldn't be worth it. There is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. And I was looking into maybe purchasing a vacation rental there. I found a property there we can afford. I called around to places that manage rentals of similar vacation homes. It seems comparable properties make between $28,000 - $29,000 a year -- this has the potential of being more profitable for us than a rental home, where there is month-to-month rent. Even after using all the funds remaining in our equity LOC, we'd still have over 50,000 of equity in our home. But I'm afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. And with mortgage rates so low, it seems like now is a good time to jump on this opportunity. Yet, with a vacation rental, there's not a steady income like there would be in a rental home. And with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future. So, what do you think? Should we do it? Or let this opportunity pass us by, for now? The home prices in the area right now start from the high 200's to the millions (I think the highest listing I saw on there was 2.25 million). I don't know how high they became during the boom, I'd have to ask my realtor to look up sold properties on the MLS for that info. Another real estate investor I talked to last week said the home prices in the area went up 17% last year.  more

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home purchase mortgage rates

SEATTLE, Dec. 9 /PRNewswire/ -- Mortgage rates fell again last week, hitting as low as 5.10 percent last Friday, after the government's decision to purchase mortgage-backed securities. The weekly average rates for 30-year fixed mortgages declined to ...

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Mortgage Rates Continue Historic Decline - PR Newswire

NEW YORK--( BUSINESS WIRE )--Fitch Ratings has assigned a rating of 'A' to Delmarva Power & Light Company's (Delmarva) $250 million series I 6.4% first mortgage bonds due 2013. The proceeds from this bond issuance will be used to repay short-term ...

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Fitch Rates Delmarva Power & Light Company's $250MM First Mortgage ... - Businesswire.com

Fed Chairman Ben Bernanke on Monday opened the door to another unconventional measure to lower mortgage rates: buying long-term Treasury bonds. In a speech in Texas Monday, the Fed chief said: Although conventional interest rate policy is constrained ...

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Ben Bernanke: Fresh Attack on Mortgage Rates - US News and World Report

WASHINGTON (AP) -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates in an effort to stabilize the housing market. Under the proposal, Treasury would seek to lower the rate on a 30-year mortgage to ...

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Financial industry pushes for lower mortgage rates - Associated Press

Dec. 3: New York Times columnist Paul Krugman discusses the likelihood that the United States is to be headed for another Great Depression. WASHINGTON - Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage ...

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Treasury urged to cut mortgage rates - MSNBC

Most will agree that the key to ending this downturn is for the housing market to stabilize. Economists say affordability in the marketplace will bring back buyers. Home prices are down 50% and more in some U.S. markets. This is increasing ...

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Housing Solution: Crashing Home Prices or Cheaper Mortgages? - Seekingalpha.com

House price falls and lower interest rates are tempting potential buyers back into the property market, figures showed today. The number of people looking to buy a new home increased for the first time in two years during November, according to the ...

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Buyers tempted back into property market - The Independent

Between holiday shopping and decorating the house this weekend, carve out some time to review your mortgage or rethink your home-buying plans -- it just might be the perfect time to make a major move. Mortgage rates are already hovering around 5.5 ...

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Make the Most of Today's Low Mortgage Rates - Smart Money

Monday, Dec. 15, the Federal Reserve's Open Market Committee will hold its regularly scheduled meeting to determine Fed policy. Typically these meetings revolve around changes the Fed makes to interest rates. The Fed could lower the rate further, but ...

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Big Ben Fires Up The Choppers - Forbes

Dec. 3 (Bloomberg) -- Mortgage applications in the U.S. surged by a record last week as lending rates plunged after the Federal Reserve pledged to buy mortgage-backed debt. The Mortgage Bankers Association’s index of applications to purchase a home ...

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