Smart Borrower Blog

Archive for August, 2008

California Facing Housing Woes

No one state has been hit harder in the mortgage market crisis than California.  Research today shows why there is so much trouble there.  In certain areas, ridiculously small homes are going for enormous prices, depending on area.  These little cracker boxes in any other part of the country would go for 50-65K, yet they are selling in CA for upwards of a half million.  And I am talking 2 bedrooms, 1 bath, maybe 925 square feet.  No McMansions, but priced like one.  Sad. In California, homes reached a peak median price of $597,640in April 2007.  By June of 2008,... more »

Fannie And Freddie May Warn

For some reason, it does not surprise me that Fannie and Freddie are once again in the news.  Reports say that the two mortgages giants may show less than stellar results for second quarter, writing down once again.  The two have already warned investors that credit-related losses, such as payouts on loans they guarantee, would likely rise through 2008.  If you follow them as much as I do, this comes as no big surprise.  Even though they are government backed, they are still private enterprises, and it is thought by many that the two seriously underestimated the real troubles in... more »

Help From Foreclosure

I read with interest of a California based company that is investing funds in to 200 Massachusetts homeowners’ subprime mortgages.   The company, WMD Capital Markets LLC, deserves kudos for taking on these 200 loans, and for slashing interest rates and forgiving thousands of dollars in late charges, legal fees and past-due interest.  The loans, purchased from  Fremont Investment & Loan, are a sign of what can be done if the banking industry shows a little concern beyond business as usual.  Fremont has a reputation of pushing aggressively the subprime loan mortgage.  Another 290 mortgages were sold to Carrington Mortgage... more »