Home Credit To Those Who Can’t Afford It Blamed For Housing Crisis

February 16, 2009
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The powers that be have nonchalantly admitted that forcing home loans on those who could not afford to pay them off is partly the reason, if not the primary reason for the housing crisis. House Financial Services Committee Barney Frank said there may have been a mistake in approving home ownership for people who could not afford it. The best option for them would have been to rent their homes.

There has been a long term pressure to provide home ownership to a great number of people regardless of the financial capability and this is now being pointed to as the culprit for the bubble burst. Fannie Mae and Freddie have…

Getting out of The Housing Mess

January 21, 2009
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The American housing industry is a mess and while there are lots of intelligent minded people in the United States no one knows for sure the exact formula to get out of the housing mess.

Experts have gloomy predictions and they do not see any recovery in the real estate sector for at least two years. However, there are ways to turn things around and it requires effort from both the private and the government sectors.

Apparently, the unwillingness of the lenders to modify loans is further pushing the country into unemployment and massive foreclosures. What usually happens is an economic crisis followed by unemployment and then foreclosure. This time though, the…

California’s Housing Finance Agency Faces Budget Crisis

December 24, 2008
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The budget crisis being faced by the State of California’s Housing Finance Agency has led to the suspension of the state’s down payment assistance and fixed-rate mortgage loan programs after being implemented for the past 30 years. A total of $1 billion worth of mortgage loans is being purchased every year by the Agency thanks to an investment account coming from state bond issues.

The agency said it has no choice but to suspend the program considering the $40 billion budget deficit faced by California.  With the state unable to issue bonds or commercial papers, a total of $3.8 billion worth of funds for infrastructure projects have been shut down by…