Daily News Channel
Huge, scary numbers are lurking everywhere these days: The massive federal bailout (now on the taxpayers’ tab)…the unemployment rate, which is now at a 26-year high…that daunting sum you are constantly told you will need if you want to retire comfortably…the six-figure mortgage balance you barely chip away at each month.
If you’re not already underwater on your mortgage, there’s a decent chance you will be.
If you’d like to get a sense of how we’re emerging from our nationwide housing malaise, sit down at Jillian and Aaron Roberts’ kitchen table. As 2-year-old twins Lennon and Miles run by — those divots in the table are their doing — the couple explain that when they first started looking to become homeowners back in 2006, there was little they could afford
Speaking at an annual conference of real estate editors, James Lockhart, head of the Federal Housing Finance Agency, said on Thursday the government shouldn’t run Fannie Mae and Freddie Mac. Lockhart should know. He leads the agency that has been doing just that since last September, when the giant mortgage insurers were put into government conservatorship
The FBI and the Department of Justice unveiled Operation Malicious Mortgage last week, a nationwide bust that produced more than 400 arrests over the past three months for fraudulent home-loan schemes. In South Florida alone, more than 100 people have been arrested since last September, including 19 just last week
How’s this for odds: If you have a house in Las Vegas, there’s a 58% chance you owe more on your mortgage than the place is worth. Nevada, of course, is ground zero for the real estate bust — but it’s hardly alone in having truckloads of “underwater” homeowners. As of December, 19.8% of mortgage holders nationwide had negative equity in their houses, according to a new report by loan-tracker First American CoreLogic.
Treasury Secretary Timothy Geithner has unveiled a new plan to combat the financial crisis: convincing private financial institutions to buy up “toxic assets” with the government’s backing. While this is a step up from former Secretary Henry Paulson’s original bailout plan—in which the government itself would buy up the bad securities—it is still not the right approach. Instead, there is a better, cheaper, less risky, more direct way to improve banks’ balance sheets and restore confidence