State of the Union

I just finished listening to Obama’s state of the union speech and this is classic Obama.  He’s an effective and excellent speaker, as he’s always been. As I get past his presentation and look at his positioning, it’s clear that he’s been somewhat chastened by the loss of Ted Kennedy’s seat and will now try … Continue reading

Another Picture Worth a Thousand Words: The Coming Mortgage Default Tsunami

At the chance of sounding like a broken record, I must talk again about the coming problems we’re going to have on the housing and banking fronts.  The chart above is extremely disconcerting.  It depicts the coming wave of option payment ARM mortgage resets.  Option payment ARM’s allowed folks to effectively pick a payment; a … Continue reading

Debtor’s Dilemma: Pay the Mortgage or Walk Away

Well, in the post immediately preceding this one, we see that there are people whose financial situation is such that they have to worry about eating between getting their monthly food stamp allotment.  That’s not the full story of the financial crisis as we’ve another group of people who, while not needing to concern themselves … Continue reading

The "ARM" and leg that’s not being talked about

Over the past couple of weeks there have been a few headlines about housing prices and home sales increasing along with an overall economic recovery.   The so-called economic recovery is fragile and bifurcated in the sense that Wall Street is having a party while the regular folks worry about having jobs and covering the mortgage.   … Continue reading

Homeowners in Distress

A recent report indicates that nearly one quarter of all US mortgages are underwater where the  outstanding mortgage is greater than the value of the underlying real estate.  If your mortgage balance is just slightly more than the value of the property, then it’s generally not a big deal.  Unfortunately, that’s not the case for many.  For many … Continue reading