Lots of homes 'underwater' on mortgages in U.S.

CONGRESS IS FULL OF LAWYERS, SO WHY DID THEY ALL FORGET TO INCLUDE SOME CRITICAL FINE PRINT IN THE BAILOUT PACKAGE?

More abuse of the taxpayer is coming.

http://pacificgatepost.blogspot.com/2008/10/what-they-didnt-tell-us-about-bailout.html

Congress didn't do its job, ... again.

It probably does not amaze me that none of the so called big media have found out about or are allowed to talk about "Fractional Reserve Banking"....It seems as though this is the real source of all this mess. Money is created out of thin air with this type of banking system that is now used throughout the world and creates "steroids money" that is eventually not very healthy for any economy that uses it.......What a let down...Unlike banks that actually profit from this, we "never" do.
A nice short ten minute Youtube documentry describes it rather well. It is called "Banking Blow". Another that is a bit longer is called "Money As Debt". Good luck fellow humans!!

The sad reality, is that all home values are 60% to 80% overvalued as is. This fact will be realized by the market, over the next 36 to 60 months. All players will have to face the certisn point when individually - one by one - they accept this.

Until mortgages can no longer be packaged as bond-securities and sold (and insured) in the speculative market, the market will ruthlessly expose the ponzi scam recently played by all Banks, Investment Houses, Hedge Funds, and now, hat in hand, begging relief from bankruptcy and forclosure. There is no exit.

What we all need now is to revalue our assets based on classic rules of prudent finance.

Unfortunately, like an Alcoholic who can not imagine life without booze, and knows they will die if they continue to drink, the valuation wonks are first going to have to admit they were full of s#%t, and come to terms with "what buyers can afford". The market will set these values, based on income. To bad the wave of business bankruptcies, now on the way in a coming set of Tsunami's will affect who has jobs. Some of us are already on bread, water, and beans.

Once upon a time, sitting in a comfy self-righteous and indignant posture, California could flaunt to the Nation during this election the reward of prosperity via hard work. Not today. As the leader of the biggest real estate scam in American history, California has lost all moral authority to judge anyone. Even the Prop 8 and 4's right-wing anti-gay-anti-abortion groups have realized this. For over 50 years, California has managed to build an entire industry and culture on real estate speculation. Self-serving real estate interests, magazine and newspaper editors, as well as individual investors boast the virtue of real estate "investment." Weekly TV real estate info-commercials further reinforce the notion that a real estate buyer can become a millionaire sitting on his hands. Envious of the their neighbor's ostentatious lifestyle, speculators of Arizona, Nevada and distance states joined the vice. Like other past pyramid scam, the dominoes came crashing down in 2007. Within its wake, participants lie as casualties across the nation: giant Wall Street Banks, big and small corporations, insurers, and hundreds of thousands of home foreclosures. Despite $700Billion in bailout and $1Trillion in emergency loans to banks, the destructive wake still goes unabated. After the most aggressive nationalization of private business in the history of America --AIG, FannyMae-FreddieMac, and troubled banks--the Fed is as impotent as it was one year ago even after mailing out stimulus checks and reducing interest rate to 1%. Having sailed through all this misery, America has yet to see the rest of the icebergs looming in the dark. California, the captain who first charted this disastrous, dangerous voyage, will lead the nation in misery as well as sink in despair. History reveals that California's future is uncertainty. As in the post 1929 depression, the first major civil strife will commence in California and later emulated in the Midwest. The course is set, charted and destination ascertained. There is little hope for California when the majority of its population are instigators, accomplices and assessories of crimes that stole billions from banks and investors. This Nation shall await merciless divine intervention to pass judgment upon the multitude of thieves and lawlessness dwelling within California.

So what's the big deal? If a homeowner wants to move, he sells his home for a price that's 40 percent less than what it was a year ago. But the price of the home he will be buying is also 40 percent less than a year ago! Let's say the price of his home was valued at $500k a year ago, so he sells it for $300k. Now he buys another home which was worth $500k before and now is only worth $300k because it also lost its value by 40 percent. Think people. It's just simple arithmetic.

I believe the best way to do to help these people and to be fair of other home owner is giving them a descent fair fixed interest rate but prolong the loan term maybe even to 40 or 50 years loan in match of the original loan amount.

Otherwise there will be many people taking advantage of this of taking a lower loan than original but sell their home in the end at the original buying loan level.

And with the possibility of another downpour of defaults looming from as much as $500 billion in outstanding option ARMs, many of which are expected to recast to higher payments in the next three years – the mortgage meltdown from the subprime fiasco is far from being over.

The best solutions for the distressed homeowners in this market are either a short sale or, if you qualify, a hybrid refinance. Short sale, is just that, the home will be sold but the homeowner can get many thousands of dollars in mortgage debt forgiven, without recourse, by their lender(s). A Hybrid Refinance allows the owner to stay in their home but they must qualify. A Hybrid Refinance resembles a Loan Modification by providing you with a new affordable loan but with a new lender. Your old lender gets the majority of their mortgage paid off and maintains the majority of their original interest in a restructured format as an incentive to cooperate. The Hybrid resembles a Short Sale in that we mitigate and/or restructure the mortgage debt. In the end you get to keep your home and you have an affordable solution that is quantified upfront and not an expensive short term fix.

For more on Hybrid Refinance visit my blog at http://blog.thenegotiatedsolution.com/hybrid-refinancean-affordable-means-to-stay-in-your-home/74/
or http://blog.thenegotiatedsolution.com

The biggest problem with underwater mortgages is that the homeonwer usually cant afford to seel the house, becuase they have to come up with the difference to pay off the mrotgage company. Bought at $500K, sell at $300K, owe the morgage company $200K after the sale. Wher are they going to get the cash?

SHORT PAY REFINANCING

There is a new buzz being used quite often in today's real estate market. That term is short pay. Most of you have not heard about this. It is a new concept where we negotiate with your current lender to pay less than the full amount for the pay off of the existing loan. This is a very exciting opportunity. Recently we lowered a couple's loan from $700k with a $5500 payment down to a new balance of $320k with a $1,719 payment, a savings of 380k! Basically you get to buy your home again at market value.

The way we are able to do this is somewhat of a proprietary system, and we have a web page that explains more, www.oflcorp.com. We have expert negotiators, one being our CEO, William Hogarty, who was on the board and loan committee of a local bank, who brings his 20 years of experience to the table for you.

THIS IS NOT TO BE CONFUSED WITH A LOAN MODIFICATION! A loan modification is simply a change in the terms of your existing loan, without lowering your principal balance. These changes can be made in a few different ways depending on your hardship. The term that is most often changed is the interest rate and payment that is required from you.

Our company has been around for 20 years and has a large facility in Pleasanton. We are department of real estate and HUD approved for hope for homeowners. We have a list of recent testimonials with people who have saved big in the last 60 days. Not everybody qualifies so please contact me for a free consultation on how to take advantage of this amazing program.

James B. Cavalier
Mortgage Consultant

JCavalier@OFLoan.com
Office: 925-474-8153
Cell: 970-988-6078
Fax: 925-474-8106
www.oflcorp.com
CFL # 605 4180

7139 Koll Center Parkway, Suite 250
Pleasanton CA, 94566

Oh, By the Way, if you know someone who would appreciate my services, please call or email me with their name and number and I will be happy to help them. If you or someone you know would like to buy a house, re-finance to lower your payment, or get cash out, please call me at (925) 474-8153 or email me at jcavalier@ofloan.com.