Accurate Rate Prediction

Posted on September 3, 2009
Filed Under Mortgage | Leave a Comment

Making home mortgage interest rates predictions has never been easy, but for the past couple of years it has been almost impossible. Nobody expected the global financial crisis, when home mortgage interest rate predictions were set to rise and the rumblings of total market failure were yet to be heard. Even after the global financial crisis started to become apparent, nobody anticipated the vast and devastating effect it would have on the US economy. Therefore, home mortgage interest rates predictions failed to match the race-to-the-bottom reality.

Not only are foreclosures rampant throughout the US, in some areas the banks are quietly refusing to take possession of properties. The moment the renter or defaulting homeowner is evicted, the house gets trashed and becomes worthless. The land taxes and repair costs are greater than the value of the land, and nobody wants the financial burden of repairing the derelict home.

From Detroit to South Bend, this story is being played out in city after city.

In a way which is mind-bogglingly incomprehensible to outsiders, and only marginally more believable to those who live in the USA, then etire wealth of the nation is being systematically destroyed by banks and governments adhering blidly to policies which combine to kill entire neighbourhoods at the stroke of a pen.

At the same time as the housing stock is being destroyed, a rising tide of homeless working poor is threatening to swamp welfare agencies.

Looking at the current situation, you would have to say that home mortgage interest rate predictions reamins low for the foreseeable future.

The solution would seem obvious – why not organise the homeless into the derelict neighbourhoods, and give them some tools and paint to start fixing up the homes? Everybody wins.

The thing is, that would take some leadership, some vision, and co-operation from all parties. The local governments are holding out the hope that they can get someone to pay the back taxes they assessed when the property was actually worth something. Local governments are pushed for revenues, and they don’t want to write off any back taxes. As soon as they think the property might be worth something, they will call in their tax lien and auction the property.

And if not the local government, then there’e the mortgage holder. Assuming, of course, that the mortgage holder is still in business. Any whiff of a chance to recoup a few thousand dollars, and the mortgage holder will be taking possession.

Where is the incentive for the owner or occupier to move in and do the place up, if it is going to be stolen from under them without a word of thanks be the government or the financial institution?

The Federal government needs to start taking ownership of houses declared “derelict”, and cancelling any and all liabilities secured by the property. They can then be placed in a pool of Federal housing stock for public housing projects. The Federal government can lend investors the money to fix up the houses, with the tenants having a share in the ownership or the property as long as they maintain the house and garden in good repair.

If we can start implementing constructive programs like this, we can have some hope that mortgage rates forecast will start to show signs of recovery. Of course, if you have a secure job, now is the time to refinance and lock in the low rates. Find out more at EmergencyRefinancing.com.

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