IIan C. Shepherdson economist for High Frequency Economics voiced his opinion recently in regards to the Federal Reserves views and recent comments on the housing crisis.
“My core view is that they really don’t get it,” said Ian C. Shepherdson, the United States economist for High Frequency Economics, a consulting firm in Valhalla, N.Y. “This is not a housing correction. It is a massive, once-in-three-generations bursting of a housing bubble. It’s a catastrophe, not a correction.”
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Rather than waiting for the expected massive defaults, we should try a new and proactive approach rather than the reactive approach that we have been taking. This may be the time to explore developing a way to reach these borrowers to guide and show them how they may be able to afford the mortgage payments. Right now we are just waiting for the expected inevitable foreclosures. I really don’t think that the counseling agencies will do much good because they have limited resources and limited talent to have any positive effects on the outcome.
It’s hard to believe that there are “professionals” out there, whether in the media, financial world, or politics that just don’t see the massive scale of what’s coming. For example, last week I sent an article on the topic of the subprime meltdown to a widely circulated magazine which is read by medical professionals across the country. This magazine is not about the practice of medicine but offers financial advice and financial planning strategies to physicians. The editor thanked me for the article but declined to run it because she did not deem it to be of interest to her readers. HUH??? I had no idea that doctors were not affected by the mortgage crisis. I guess no physicians took equity out of their homes, and none got adjustable rate stated income loans. Sheeesh. I bet this rag covers the topic within 6 months.
- Paul
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I had to respond to this. In November I let my first mortgage company know that I will have trouble paying the new adjusted rate in January and was wondering if they could help me out. I have been on the phone almost every day for one hour or more on hold since November. I wanted to make sure they received all of my docs and they understood my situation. Needless to say today is April 1, 2008. I did receive a modification. It is the same loan. I called GMAC and they said that is the best they can do. I asked if they could at least freeze the rate so the payment can remain as it was before. They said that is the best they can do. I tried talking to a manager and they told me no one else can help.
I called the hopeNow on March 26 and they told me to call them and try again. As I write this I am on hold with GMAC to talk to them again and tell them what the hopeNow guy told me to tell them. At this point it appears to me that GMAC is full of bull and they do not want to help anyone. The loan modification they gave me is the same amount the loan was that I have been telling them since November I cannot afford. At this point I am still trying but I do not expect much from GMAC.
Best of luck to you all.
Will
hi iam receivin at least 3 postcards a day from companies who claim to be able to work with my lender to modify my loan for a fee of course. how do you know which of these are not just out to buy your house from under you or just take your money? anyone heard of instant capital?