The Collected Works of Author and Blogger Larry Roberts

Archive for September, 2011

The fact that prices are falling is not a bad thing, not that loan owners who rely on HELOC income would agree. Financial market implosions purge irresponsible and unsustainable habits from the populace. HELOC dependency serves no one, not even the sheeple who got to enjoy it for a time. The unceremonious fall from entitlement is inevitable, and although the fall is emotionally devastating, getting off the HELOC heroin is better for borrowers in the long term. Falling prices bring affordability to the prudent who understand valuation and their cost of ownership. Many people have put off their purchases because they understand the power of rental parity. Those people will be rewarded with lower debts, and the ability to move…[READ MORE]

The current low interest rates are truly remarkable. We are approaching the all-time recorded low from the early 1950s. The reason for the latest drop in interest rates is more market manipulation by the federal reserve. However, in a broader context, the continually dropping interest rates are a sign of monetary deflation caused by the ongoing write-offs of bank debt. It can be argued that today's low interest rates are high in real terms. If you accept Mish's definition of inflation as the expansion of money supply and credit, we are currently experiencing deflation caused by all the write downs. When you have deflation, even low interest rates are high relative to inflation. Another way to look at the situation…[READ MORE]

I first covered the flopping phenomenon a few months ago in Flopping: unscrupulous realtors deceive lender clients and profit from fraud. Apparently, the occurrence is common enough the story is gaining traction in the mainstream media. The main reason I am covering it again is because a reader posted a property that looks like a particularly egregious case of flopping. I'll let you decide. More short sales bring new scam: flopping In 'flopping,' a home is purchased by insiders at a steep discount, then immediately sold for a big profit. By Melinda Fulmer of MSN Real Estate Real-estate agent Lynne Wright thought she had found the perfect home for her clients. The quiet house on a cul-de-sac in one of the most prestigious…[READ MORE]

Today's featured article is a commentary from Housing Wire's Kerri Panchuk. Apparently, she does not accept the wisdom of strategic default. For a variety of reasons, I believe strategic default is a wise course of action for underwater loan owners who are paying more to own than the cost of rental. Let's read the counter-arguments to check their validity. The new slap in the face of foreclosure by KERRI PANCHUK -- Tuesday, September 20th, 2011, 2:33 pm Every American upset with the state of mortgage lending should read the Fox Business News article on strategic default in order to meet the "New Face of Foreclosure." Strategic defaulters are underwater borrowers who intend to remedy their "upside-down situation" by simply walking…[READ MORE]

Some foreclosure and eviction cases can be heartbreaking. However, we live by rule of law in this country, and unless we want to start giving away real estate to those with the saddest story, these evictions must take place. Elderly woman, 101, in tears as she's evicted from her home and her possessions are thrown into dumpster Texana Hollis's son failed to pay her property tax Detroit woman had lived at her home for 58 years Rushed to hospital after eviction over heart attack fears By Paul Thompson Last updated at 7:44 PM on 13th September 2011 A 101-year-old woman has been evicted from her home of the last six decades after her son failed to pay property taxes on…[READ MORE]

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