The Collected Works of Author and Blogger Larry Roberts

Archive for April, 2012

Back in August of 2010, I noted that HELOC abuse had hit a record low. Since then, it has declined even further. A recent report from Fannie Mae puts mortgage equity withdrawal at a 26-year low. I guess when owners have no equity, it's much harder to raid the piggy bank. Our national economy has become completely dependent upon loan owners. What will it take for us to kick the habit? 85 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in Fourth Quarter: 26-Year High Real Cash-Out Volume at 16-Year Low MCLEAN, Va., Feb. 2, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) released the results of its fourth quarter refinance analysis showing homeowners who refinance continue to strengthen their…[READ MORE]

California and Great Britain have much in common with regards to its real estate. California has witnessed three catastrophic bubbles over the last forty years as has Great Britain. Each bubble had different causes, but the timing was similar. California has strict land-use controls which creates artificial shortages of housing, and so does Great Britain. California's economy has become dependent upon rampant HELOC abuse to fuel unsustainable booms and heart-wrenching busts. Great Britain endures the same real estate borrowing cycles of boom and bust. In this latest bust, lenders have not foreclosed on California's mid- to high-end real estate keeping prices relatively unaffordable in prime areas. This has caused sales volumes to plummet due to the absense of a move-up…[READ MORE]

Californian's believe it's supposed to cost more to own an home than to rent one. It's one of the biggest misconceptions in real estate. It's so deeply engrained that even the so-called experts don't question it. Renting is supposed to be more expensive than owning. Renters have mobility and no responsibility for maintenance, insurance, taxes and other expenses. The main reason anyone would pay more to own than to rent is because they foolishly believe they will be financially compensated for ownership through appreciation. We all see how that is turning out. HOUSING: 'This is crazy': Home ownership cheaper than renting By ERIC WOLFF [email protected] -- Posted: Saturday, April 7, 2012 6:00 pm The housing market has gone cockeyed. No,…[READ MORE]

I have two strongly held views on foreclosure and principal reduction that are completely at odds with the drivel in the mainstream media. First, foreclosures are not a problem. In fact, foreclosures are essential to the economic recovery. All efforts to avoid or delay foreclosures are counterproductive. Second, principal forgiveness is the worst policy option. The clamor from the left to give away my tax dollars to loan owners is getting louder and louder. It's simply bad public policy, and it should not be embraced by policymakers. [gview file="" height="675" width="550"] Sharing the Pain and Gain in the Housing Market ... The big question before lenders, investors, and policymakers today is how to avoid another wave of costly and economy-crushing…[READ MORE]

I want to introduce you to the Strategic Deals Law Blog. In their own words, "Strategic Deals Law Blog offers insights into the complicated world of business transactions, bringing clarity and the tools needed to make your business a success." The blog is written by clear-thinking practicing attorneys who really know what's going on. Mortgage Fraud Has Moved From Subprime To FHA By Jim Petros on March 16th, 2012 Posted in Real Estate In a November 2011 Special Report by the Community Development Studies and Education Department, sponsored by the Federal Reserve Bank of Philadelphia — authors John Wackes and Harriet Newburger compare patterns in mortgage lending for the Federal Housing Administration (FHA) to those for the overall mortgage market from…[READ MORE]

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