My New Blog

The mortgage world has continued its wild ride so far this year. Government stimulus packages have been enacted and lenders are under pressure to help homeowners avoid foreclosure. Can anyhting be done to help?

I am starting to see prices drop to a point where people can qualify for loans. VA loans have come roaring back into style. 50% price drops means properties cash flow as rentals. Without a firm footing in affordability I do not think anything will help the housing market. Loan modifications will only do so much. Unless they are permant reductions in the loan balance, we are just postponing more market pain. Who is entitled to future appreciation after a loan balance modification? How to help people that have cash-out refinanced into trouble?

So many questions but I think there is hope. Stay tuned.