california foreclosures: The "Liquidity Crisis", "Economic Stimulus Package" and my "Sleeping Tiger" Theories!
- 03/07/08 07:45 AM
What is the "liquidity crisis" and why does it exist? Across most of the country, Fannie and Freddie currently purchase loans of $417,000 or less from lenders, and repackage these so-called "conforming" mortgages into securities sold to investors. Investors generally trust that these securities will be repaid, in part because they are backed by the government-sponsored entities, so there's been little interruption in consumers' ability to obtain conforming loans at low rates. Until the Economic Stimulus Package was signed into law, loan amounts over $417,000 were typically held onto as "portfolio loans" by banks or sold off as mortgage backed securities to … (4 comments)
With many of the subprime and "risky loans" equating out to higher levels of default and foreclosure in California, there are many entertaining the possibility of "finding a great deal" and learning more about the foreclosure process. I would like to take an opportunity to bring some light to the topic. Certainly, this is not a complete guide to foreclosures and should not be treated as such. Rather, this is a great start towards understanding the process and things to take into consideration, when going through or entertaining a foreclosure. First and foremost, I want to stress that this is a time of … (9 comments)
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