Category Archives: Risky Lending

The sweet deal is ending

Posted on September 27, 2006 by grim

From the Herald News Adjustable rate shell game can take hefty toll By Heather Haddon Gerard Herard was able to finally purchase a home in 2003 through a $225,070 mortgage from Security Atlantic Mortgage. His payments on the quaint Totowa … Continue reading →

Posted in New Jersey Real Estate, Risky Lending | 26 Comments

“Dude, you’re going to jail”

Posted on September 25, 2006 by grim

From Motley Fool 24 Years Old, $2 Million in the Hole So, have you heard the one about the 24-year-old “real estate investor” who’s $2 million in debt and still hasn’t gone back to his day job? No? Alas, you … Continue reading →

Posted in Housing Bubble, Risky Lending | 18 Comments

Newfangled mortgages

Posted on September 25, 2006 by grim

From the Santa Cruz Sentinal: Lessons on newfangled mortgages What happens when you rent a house? You pay money month after month and never build up equity in the property. All that money gone and nothing to show for it. … Continue reading →

Posted in National Real Estate, Risky Lending | Comments Off on Newfangled mortgages

What happens when the party is over?

Posted on September 24, 2006 by grim

From the Star Telegram Avoiding mortgage crisis is a priority When the real-estate industry made it easy to borrow a lot of money, it also made it easy for people to get into financial trouble. Which is exactly what’s happening, … Continue reading →

Posted in National Real Estate, Risky Lending | Comments Off on What happens when the party is over?

“Can’t pay, can’t sell, can’t refinance”

Posted on September 23, 2006 by grim

From the New York Times: It Seemed Like a Good Bet at the Time … FOR Inga Rogers, the party ends in 38 days. On Nov. 1, the adjustable-rate mortgage, or ARM, she took out three years ago at the … Continue reading →

Posted in National Real Estate, Risky Lending | 9 Comments

New mortgage standards due in “weeks, not months”

Posted on September 22, 2006 by grim

From Inman News: Tighter standards for new mortgages coming soon New guidelines that would require banks to tighten underwriting standards and track portfolio risks on nontraditional mortgages while providing more comprehensive disclosures to borrowers will be finalized this fall, a … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

Just Plain Dangerous

Posted on September 21, 2006 by grim

From Charles Schwab: Housing: ARMed and Dangerous This time last year, a hot topic at cocktail parties was how high real estate prices could still go. Now, with evidence of falling prices in many parts of the U.S. dominating not … Continue reading →

Posted in Economics, Housing Bubble, Risky Lending | 3 Comments

If you can’t spot the sucker, it’s you.

Posted on September 20, 2006 by grim

From Businessweek: Confessions of an Ex-Mortgage Lender The Durham (N.C.)-based nonprofit Center for Responsible Lending estimated in July, 2001, that predatory mortgage lending is currently costing Americans more than $9.1 billion each year. Lenders will argue that each one of … Continue reading →

Posted in National Real Estate, Risky Lending | Comments Off on If you can’t spot the sucker, it’s you.

Do borrowers understand the risks of nontraditional loans?

Posted on September 20, 2006 by grim

(updated) From Marketwatch: Exotic mortgages sow confusion, senators told Homeowners don’t fully understand the risks associated with taking on alternative mortgages that allow interest-only payments or negative amortization, federal officials told senators Wednesday. At a hearing on so-called exotic mortgages … Continue reading →

Posted in Housing Bubble, Risky Lending | 5 Comments

Twisted ARMs

Posted on September 18, 2006 by grim

From Marketwatch: Misery quotient Are you at risk with your adjustable-rate mortgage? More borrowers than originally thought may soon find themselves suffering payment shock. The great fear: Rising interest rates and falling home values. Most concern stems from mortgages with … Continue reading →

Posted in Housing Bubble, Risky Lending | 12 Comments