Written by admin on November 11, 2008 – 3:35 pm
Are you tired of these kinds of titles? ? thought so?. Just a year back, everything was fine and people were making money in the market, the property? and equity markets. Today, it would be very lucky if not lost money in any of these areas. During these periods Gradica, I wonder, what are they? care about preserving? The answer to that question? you need to keep if you? want to see your children to independence? and then retire comfortably. And that, my friend? the purpose of my blog. ? I? sar? Send comments about my lack of understanding on mortgages, loans, the savings? and the? insurance and investment generally. Eventually, there will be? other investors and businessman who succeeded intelligent and also contribute to this blog, so that here? participant of all? pu? be pi? when it is wise to treat their personal finances. Here? my income, as mortgage broker, how we arrived at the housing market situation.The current share of federal funds that was around 6.5% to met? second in 2000? been cut off by 2001 to work by February 2002, it was about 1.75%. The rates were then cut pi? gradually Finch? reached in April 2004 and 1% anyway they? began to increase from July? of that year, it was 2 years, in July 2006,? before exceeded? 5% of they?. The federation has cut rates in 2001 to avoid a recession, but has inadvertently planted the seeds for the turmoil in the housing market today. While rates have gone already?, Mortgages have become affordable and the people who would not have normally qualified for such loans, based on their income suddenly,? si? found that mortgages are offered by the bank. For many families, their dream of owning the house? turned into a reality?. There was only one problem with this plan of action. The bank lending has not asked the borrowers to prove they could make their mortgages when interest rates are finally increased. Then took place around this time, quell'aumentare began foreclosure rates. There were other factors as well. The bank has provided mortgages for certifying cars that did not require any proof of income. Accept the income declared on the application form away with the race of all controls on the reasoning that had the property? as security or loan. These mortgages for? I came to be known as the Ninja mortgages - no income no job no assets, as customers have eliminated these mortgages probably would not have qualified if their circumstances? had been? observed in to? with pi? diligence. While foreclosure rose, the prices of property? were arrested. Many properties? have lost even more? value because of vandalism such as property? empty inevitably suffer this fate. ? The end result was that families have lost their homes and collects the lost? their loans? and while the financial sector have been arrested, lost? shareholders a significant part of their investment in these institutions. ? ? pi? Further, the problem? frequently been limited in S.U.A. just as the? sell? much of their bank folders or mortgage securities guaranteed by a mortgage to the bank to raise capital. Asian and European bank bought many of these folders or securities as on paper has offered a very good return on their investment. Subprime mortgages are of as high interest rates imposed by customers are quite advantageous in high conformity? with mortgages of these? high risk of carrying. Nobody wants to be left out when there? ? Asian and European bank of the profits? be done and what? When the housing market in S.U.A. si? arrested, considered the pain. The net result? state that all bank? become extremely cautious in lending, not just to customers and businesses but also among themselves. Since loan supplies generally trade and fuel consumption, we are now heading towards a recession. What? impediciamo as this kind of situation in future? I am an economist but the First Amendment gives me the right to make my opinions heard, although it can? be the thing that pi? muta've ever found. What? Here goes. The only criteron for the loan should be the capacity? the borrower to pay back the loan, not the value of the property?. The ownership? should play only a minor role in the decision to loan. The mortgage should be assigned only to customers who can demonstrate a steady income and certain. They should not be allocated on the values of a property? while these may fluctuate dramatically or disappear entirely. The loan? pu? be measured as determined multiple of the net disposable income? total of a family and not the most. ? another that comes to the figure of the loan would be that the total net disposable income should be atleast twice each interest mortgage contract year. ? This would ensure that the installment of a mortgage on the basis of interest only to be affordable even if the rate of interest? doubled. From disposble income, means that the portion of income left after all fees and daily expenses have been deducted. The banks? if be? coercive to do their due diligence and to record their detailed investigations before lending to customers. An independent body then would be responsible for monitoring and mortgages would have the power to apply sanctions to errant providers. The purchase of the insurance policy to protect mortgage payment should be mandatory for all borrowers. These policies pay off if the borrower can not? work because of the accident, disease or overabundance. They are usually biennial policies and relatively cheap. Usually do not pay off in the first 6 months of purchase or where the person covered has learned that he was going to be made redundant. In genuine cases, paying out an amount that covers the installment and mortgage bills practices. This payment provides some relief while the head of the family looking for a job or recover his health. Finally, the providers themselves could help avoid read? catastrophic situation yet. They could install their own company? insurance to guarantee of? Cost? mortgages in default. The reasoning behind this suggestion? that a property? quickly loses its value the provider preclude once and places it on the market as explained pi? soon. It seems to me that it was a proposal so that much better? he let the family stay in the house and do and recommend and encourage the winner of bread to select its problems. The company? insurance would cover the cost of interest sull'ipoteca for a term just as the mortgage insurance payment in passing pi? soon. The insurance would cover only the cost of basic interest loan to the lender and not uploaded to the borrower. In addition, the company? insurance would do its own due diligence prior to the sale of politics and shaky loans would be less likely to cover. In conclusion, I would say that most people? over optimistic about what can afford to borrow. It should be the responsibility? of? s? the lender? to arrive at the right picture to be so n? n? the needs Borrower suffer because of inadequate loan. Thanks for reading and I hope that you leave comments, positive or otherwise, about my thoughts. Zeke
Zeke Zongerella