Posted on November 30th, 2007 by Jeffrey Posner
So the news on the street today is that the “Hope Now” alliance, headed by Treasury Secretary Henry Paulson , is playing with the idea of freezing interest rates on some of the sub-prime loans in the market. In a sense this would preserve the teaser rates for a longer period of time allowing owners to avoid the jump in payments when the big reset arrives.
The congress actually has a plan as well. They are thinking of letting judges of chaper 13 bankruptcies modify the loan agreements. As if the bankruptcy process is not tricky enough. This would further delay foreclosures and allow the government to modify existing contracts! It almost seems unconstitutional…
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Posted on September 27th, 2007 by Jeffrey Posner
As if we all didn’t see this coming. Discount brokers are hitting hard times in the market and Foxtons out of New Jersey has stated that it might be headed for bankruptcy. Foxton’s announced that they will be laying off approximately ALL of their staff. I wonder if I can buy one of those cool minicoopers at a good price?
Discount brokers can only thrive in a market that is hot and where the liquidity of real estate is fast paced. The problem is that real estate is NOT a liquid asset, except in a boom such as the one we just had.
The reason owners pay a 6% Realtor commission is because in traditional markets, you need a professional to help sell your house. They have an in, they know of people looking to move in to the area, this is what you are paying for.
Although I know we all have mixed feelings on Realtors, I can assure you that the value of a good Realtor is becoming more important than ever.
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Posted on September 11th, 2007 by Jeffrey Posner
You have to read this, I took it from Diana Olick’s blog on CNBC. Times are already becoming desperate!
It seems local New York City reporter Lou Young, of WCBS, came upon a story about two mortgage brokers in New Rochelle, NY, who lost money on an investment property and so, in order to keep afloat, turned the home into a brothel. They tried to sell, then tried to rent, but none of it really panned out. One can only assume the mortgage business wasn’t helping this couple either. The couple, and their four employees, were arrested, after police raided the home last Friday night. The officers were tipped to the brothel from a posing on Craig’s List offering dominatrix services, not to mention a grand opening special.
This couple of mortgage brokers were just trying to find some cash to float their loans, much like Countrywide I guess. It kind of makes you think. Thanks to Keith at Housingpanic for the tip.
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