This space was where I argued that real estate would suffer in the medium-term due to a number of factors. This trend will impact homebuyers, mortgage buyers and investors as well as banks and other financial institutions that have an interest in real estate. I’m a mortgage buyer and we need to be careful that our mortgage […]

Richard Vedder wrote the article below, which appeared in Wall Street Journal last Wednesday. Although it doesn’t directly affect mortgage buyers, or the ownership of real property notes it offers an interesting commentary on government handouts. Reprinted with permission. The American economy grew by 3.5% per year from the mid-17th century through the late 20th. Since then, this growth rate

Another day brings another flood of headlines about the amazing housing market. In some markets, home values rose nearly 20% in 2012 compared with the previous year. Inventory is low and foreclosures are down. Flippers are rushing to beat competitors for nearly every type of house. The future looks bright for real estate investors and mortgage buyers,

According to the S&P/CaseShiller index, property values rose 6.8% between December 2011 and December 2012. This was not surprising to anyone. Phoenix was the leader of this group, with 19 of 20 cities seeing value increases. This resulted in Phoenix gaining 23% during that 12-month period. The trend has been welcomed by note buyers and real estate investors. Economists and

The U.S. has been able to recover from the recession and have enjoyed a fake recovery for several years. Real estate investors, mortgage buyers , Wall Street, and Wall Street all have witnessed the return to good times as home prices rise again. This space has previously discussed why the recovery isn’t real and how it was

They’re back! They’re back! They are helped by newspaper headlines that announce skyrocketing housing values and prices reaching their peak in Dallas and Denver. The Fed’s actions are the reason for almost all this boom, according to mortgage note buyers and smart investors . They keep interest rates low and pump trillions of dollars worth of “free” money into

If you have been a long-time reader of this blog, you may remember my June 10, 2011, article on the student loan bubble. It included details about recent college graduates’ high unemployment rates and the problems with defaulted loans for students attending for-profit colleges. What has happened in the past 14 months? Yes, they have. The Apogee

Should you repay $10,000 borrowed from a friend or family member? What about if you borrowed the same amount from a bank? Most people would answer the first question unqualifiedly, and the second question only slightly differently. What happens if you don’t have enough money to make the loan payments? Strategic defaulters are borrowers who can’t pay their

Are you sure your washer is working correctly? Yes? You can. Also, you should repaint and possibly add a swimming pool to your home. You should eat out more and then go to the movies. Why? You see Uncle Sam wants you to spend, and spend, and spend. This charade of a recovering and healthy economy can be continued by the Fed

Wall St. Journal’s front page announced that a $25 billion settlement with banks regarding alleged foreclosure abuses would provide financial relief for approximately one million at-risk borrower, raising new hope for an economy still struggling from the mortgage bust. One positive aspect of the 16-month-old agreement is that banks will pursue foreclosures more aggressively, clearing out the