Bush Freezes ARMs and offers Hope Now?

     President George W. Bush has heard the cries of the people and has responded. No, it's not for the control of weapons build up or world peace. It's hope as in "I hope the mortgage companies will listen and not raise ARMs rates". This does not deserve the attention it's getting. Since it's voluntary and highly restrictive and many have no hope at all from the restrictions that are placed on who qualifies.

     Since rates are getting lowered by the fed anyway this will be a non issue for most ARMs. Many people have more hope if they just talk to a local lender and get refinanced now that the Fed has lowered and continues to lower rates. Many mortgage companies will be forced to refinance these customers or lose them to others anyway. It's almost in the cards for lower rates anyway but our Dollar's buying power will suffer in the global markets. Lower interest rates make international investors stay out of dollar based investments. Our best USA export might be real estate next year so the lower prices and lower dollar could help turn the market around. International real estate customers are already contacting me. If the market does not bottom out soon or start to rise then they are for the most going to stay on the sidelines. Nobody want's to take a ride on the falling value of the dollar so we can't just keep lowering interest rates forever.

    I don't think mortgage companies want more REOs so they will do what they can do to stop this. Having prepayment penalties in place does keep people captive with their current mortgages. So the companies that gave people low teaser rates now have captive customers who can't refinance without paying the prepayment penalties. It's pay me now and pay me later for these mortgage companies. They knew the higher rates would force people to refinance but what they did not count on was the Fed would also raise rates and accelerate the ARM rates even more and also make it harder for people to qualify for new ARMs or current fixed rate loans. The lower rates are coming and that's the real hope for many.

    The worse cases are people with 100% financed property with Arms in place with prepayment penalties. They have no where to look for hope so President Bushe's plan may be the only option other than throwing the keys to the mortgage companies. They are trapped in a rising mortgage and a property with lowering value. They can't refinance since they have no money to pay a prepayment penalty and equity would make even the current loan more than 100% of value. This dream of home ownership is more like a nightmare for them. Nobody knows what's going to happen in 5 years but if people want to stay in there homes and mortgage companies don't want more REOs then listen to Bush this sounds like a good plan.

    Hey there is a war still going on too! It's the least mortgage companies can do to support the war effort. I would like to see new Fed mortgage programs for VA loans to help any military personal deployed and also when they come home. I hope someone keeps them in mind. It's not like they can go out and get a part time job to pay new higher ARMs rates while they are out dodging bullets.

What's Realty all about?

Is it this http://en.wiktionary.org/wiki/Realty and this http://en.wikipedia.org/wiki/Realtyand is there more? Please join my new group Realty http://activerain.com/groups/Realty and help shape the way the world views Realty on . It's our chance to talk about realty issues and the real estate market. Everyone is welcome to join this new group.

    Realty is everywhere and impacts everyone but we only have one earth. Do you really think you can even own realty? It was here before us and will be here after we are gone. Your title passes on only because it's been recorded in history. If you own realty is it free and clear ownership? Try not paying your property tax and you will soon find you don't own and you really never did own anyway. Your ownership exists because government structures are in place to enforce these ownership rights. These structures are in place just like a fence. They mark your realty's exisitance but they are not free. Just like it would cost money to build and maintain a fence around your property to mark the boundaries. Signs warning not to enter or face the law or a shot gun. Wars have been fought and still are over realty. So can you really own realty? What is it that you think you own? You own the right to fight and pay and even die for realty. It's not free and it's not even real if it's not enforced.

    What value it has is based on it's society's value at the time. There's gold in them there hills or it could be the next superfund site. What you have the right to do with it and how you use it. It's location location location too. Is it near water, does it have water, do I have to cross water to get to it? What are it's resources, the climate, is it really dirt cheap, oh no there goes the neighborhood? So many factors can change the value. Welcome to the real world where nothing can have a value unless the market agrees. Society creates the market and a buyer and a seller put a value on it.