I have to say that I love Mad Money’s Jim Cramer. I love someone who is willing to absolutely speak what’s on their mind and not have to be beholden to anyone. Read more

Make Sure You Understand Taxes Due On A Short Sale

You would think that with all of the foreclosures in Fort Lauderdale and throughout South Florida, that the state and county officials who handle tax collection would work to facilitate the rebound of the housing sector.

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Federal Reserve Keeps Interest Rates Steady

I was waiting..and waiting..and waiting to write a post about what the Federal Reserve should do about interest rates and had to stop pending their announcement. I did not want to venture a guess and it’s a good thing that I did not. 

Although reducing the rate may help out some homeowners and borrowers, especially those with Home Equity lines, it could actually have an unwanted effect and result in higher mortgage interest rates for the rest of us.

Luckily, I bit my tongue in trying to hurry a post and make a prediction. In a statement that was released yesterday…

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.

Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.

Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain.

The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. Ms. Cumming voted as the alternate for Timothy F. Geithner.

I guess the Fed needed to quickly make an announcement and move on to bigger and much more pressing issues. Like what in the world are they going to do with AIG?

I’ll keep you posted.

Have We Reached The Bottom Of The Real Estate Market? Who Cares?

Just when you think it can’t get any worse, the Federal Reserve may be meeting soon to lower interest rates yet again, all the while foreclosure filings are up and the National Association of Realtors claim it is a great time to buy a house.

While for some with good credit and sizeable down payments there are some great deals to be had in the real estate market, how is everyman America going to get some well needed REM sleep to realize the fading American Dream? Where is the declaration of the bottoming out of the housing market which has been in a freefall for some time? Read more

Analysts Call For Continued Housing Price Decline

If you are seeking to sell your home, you may want to take notice of what is going on in the financial markets. The pricing of your home will most assuredly be affected, that is if you have a real estate agent who has any clue as to what they are doing.

The collapse of Lehman Brothers Holdings Inc and takeover of Merrill Lynch & Co Inc will cause liquidity in the credit market to shrink, resulting in lower home prices, prominent U.S. banking analyst Meredith Whitney said.

The Oppenheimer & Co analyst also expects fewer mortgages to be available for prospective homeowners, as she sees no hope for the return of the mortgage securitization business.

“All this creates a recipe for meaningfully lower U.S. house prices,” Whitney said.

The magnitude of houseprice declines in the next few years could likely exceed expectations of both the markets and the companies, she wrote in a note issued late Monday.

“The fact that all banks under our coverage have unrealistic HPA (housing price appreciation) assumptions will in our opinion lead to a material and protracted writedown and capital pressure scenario for banks well into 2009,” Whitney said.

Since the onset of the credit crisis over 14 months ago, less than $100 billion worth of mortgages have been securitized and, accordingly, homeownership stands at 68 percent, Whitney said

Democrats Want Lenders To Freeze Foreclosure Proceedings

Democrats are again calling for a moratorium on foreclosures. The democratic leaders in the U.S. Senate are seeking a freeze on all foreclosure activity for 90 days.

Now that the U.S. Government has control over Fannie Mae and Freddie Mac, the Senate Democrats are looking to flex a little muscle and force the two mortgage giants to stop foreclosures and help more borrowers stay in their homes. for 90-day foreclosure freeze

Senators urge Fannie Mae and Freddie Mac not to foreclose on mortgages they hold and help borrowers stay in homes.

The troubled home loan giants, seized by the government last Sunday, are being “asked” that they look at other options instead of foreclosure. Fannie and Freddie should rather work to help struggling borrowers stay in their homes, four senators say in a letter to the firms’ new chief executives and the regulator now controlling them. They’re calling for a 90-day freeze on foreclosures.

Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) together hold or guarantee some $5 trillion in outstanding mortgages — more than half the nation’s total.

The Bush administration announced last Sunday it was taking over the two companies in a bid to help reverse a prolonged housing and credit crisis.

What do you think about this? Do you think that this makes sense or do you feel it compounds problems? With Lehman brothers going under and Merrill Lynch being absorbed by Bank of America, can the government be expected to time and time again step in to help homeowners…many of whom should have known better than to take on such debt in the first place?

I believe that it is not the government’s place or responsibility to bailout homeowners and lenders. What do you think?

Down Payment Assistance Programs May Be Saved And You Can Help

 

When President Bush signed the Housing and Economic Recovery Act of 2008 back in July, there was a provision on page 479 that has had major implications. This provision will eliminate down payment assistance programs, or DPAs, starting on October 1st of this year. Efforts are underway to save these much needed programs. Read more

We Must Always Remember!

A transcript of Kevin Michael Cosgrove’s chilling call to 911.

WARNING: Contains explicit language.

9-11: What’s the telephone number I can tell FD to push up? What’s the telephone number you’re calling from?

KC: I can barely see.

9-11: You can barely see?

KC: 4-4-1… .

9-11: 4-4-1… .

KC: 2-6-2-3

9-11: That’s on the 105th floor of the Northwest corner, right?

KC: Right.

9-11: At number Two World Trade Center?

KC: Right … Lady, there’s two of us in this office. We’re not ready to die, but it’s getting bad.

9-11: I understand, sir. We’re trying to get all the apparatuses there. I am trying to let them know where you are. Stay on the line

KC: Oh, please hurry.

Fire Department: Let me talk to the caller please … Let me talk to the caller. Where is he?

9-11: He’s on the line.

FD: Let me talk to him … Where is the fire, sir?

KC: Smoke really bad. 105 Two Tower.

FD: Alright. Sit tight. We’ll get to you as soon as we can.

KC: They keep saying that, but the smoke’s really bad now. Read more

What Does The Surge In Foreclosures And Mortgage Defaults Mean To You?

Last Friday, the Mortgage Bankers Association said that more than 4 million American homeowners with a mortgage… a record 9 percent … were either behind on their payments or in foreclosure at the end of June.

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