Real Estate Wealth Protection With Short Sales
Is a sharp correction in store for the real estate market?Fannie Mae, the largest buyer of mortgages in the US, is worried. They recently warned that the probability of a housing bust has risen sharply in certain parts of the country. Fannie Mae and Freddie Mac financed about 43% of new home mortgages last year. That's down from 53% the year before. Fannie and Freddie only buy "conforming loans" In these days of easy money and competition for borrowers...
morelenders are selling mortgages to non-government sponsoredloan buying companies. They have less stringent lending standards. That means more risk as it allows home buyers with poor credit records or unconfirmed income to qualify for mortgage loans. Listen to this! 24% of the sub-prime loans sold to non-conforming buyers in 2004 were adjustable rate mortgages with an interest only feature. And...
these mortgages are not restricted to less expensive houses. The share of jumbo mortgages loans ($359,650 & up) accepted without full documentation increased from 27% in 2001 to 51% in 2004. Fannie Mae warns that the real estate collapse of the late 1980s was preceded by similar patterns.Some point out that the real estate bubble is effectingvalue in just certain areas. But they don't understand thatjust 22 of the most expensive metropolitan markets in theU.S. account for 35% of the total value of the country's residential real estate.If those markets begin to collapse they will shock realestate values everywhere.What should you do if you are sitting on fat real estatecapital gains.
First... make plans now. Once a correction (crash) begins you will have a hard time gettingout of your property. Values plunge and buyers disappear.If you don't believe there will be more than a little dipin real estate appreciation and you want to hold on to yourproperty... here's an idea.
Use the stock market as insurance. How do you do that?Find real estate stocks and do short selling. Well managedthis can be an effective strategy.If real estate values continue to climb you still own yourproperty and continue to accumulate capital gains.If real estate values begin to fall you sell short selectedstocks and profit from the decline, which balances the loss in the value of your real estate. You protect your realestate gain... and maybe even come out ahead on the strategy.An ETF is an Exchange Traded Fund.
That's a basket of stocks that trade under one symbol just like a stock. You can quickly buy, sell or short an ETF through an online broker in seconds. You have instant liquidly... somethingyou don't have with real estate.Two ETF's that you could be ready to short sell would be: IYR - A basket of real estate stocks IYF - A basket of financial stocks.Lots of areas would be hard hit by a down turn in realestate including: banks, mortgage lenders, utilitycompanies, materials suppliers and especially homebuilders.The stocks of leading home builders that would sufferduring a real estate bust include:Brookfield Homes - BHSBeazer Homse - BZHCentex Corp - CTXD R Horton - DHIK B Home - KBHYes, short selling is a radical strategy for the smallerinvestor, but aren't you the one who needs the gain protection the most?You may find a local stock broker that would give you some help, but you should understand some basics about thestock market and trend following. You can easily learn that here...
Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.comAmazing Free Government Grants Giveaway!
Free Money Got Bad Credit, No Credit, No Problem. Got the Bad Credit blues. Bankers turning their back to you. Take a long hard look at the new method of getting money and no banker is going to turn you down. Better yet there's NO INTEREST and you NEVER have to REPAY it.
Those who know where the money is, get the MONEY! Interested! Get ready for an eye opener. Become one of those who knows where the money is. Read on! Free Money ALL NEW for 2004!!! Matthew Lesko wants you to get Free Money TO PAY YOUR BILLS!!! Billion of dollars are given out every year that you can use and Lesko's new book will show you how to get it! Get Free Money for: Bad Credit will not hold you back for free money reasons below living expenses mortgage, rent closing costs education costs health bills chile care home and auto repairs entertainment travel and even credit card bills!!! Everyone qualifies! Even with Bad Credit Government Free Money programs aren't only for the very needy. Even those who make...
Amazing Free Government Grants Giveaway!
Mortgage > Amazing Free Government Grants Giveaway!
Google Adwords – Online Riches Without Owning A Website Or Product!
Did you know that you can make money from Google Adwords without having a product to sell, or even a website?Its true and there are many people all around the world quietly making lots of money doing it.So how do you do it?Quite simple really, you become an affiliate.An affiliate is somebody who sells other peoples products for a share of the profits. There are loads of companies on line who are eager for you to become their affiliate, and will pay you very well for generating sales for them. Did you know for example that mortgage companies and other financial institutions will pay up to $50 per referral? Normally your prospect doesnt even have to take the mortgage in order for you to pick up the money, you get it for them just filling in the form.Satellite TV companies are another example of big payers, and there a lot of high ticket software products that can earn you $100+ commissions. There are loads of other companies in all walks of life that want you as an affiliate, do a...
Google Adwords – Online Riches Without Owning A Website Or Product!
Mortgage > Google Adwords – Online Riches Without Owning A Website Or Product!
Financial Partners Releases Spanish Version of Mortgage Website
Chicago, IL (ContentDesk) August 19, 2004 -- Financial Partners of Illinois and Mortgage Services, Inc. today announced the release of a Spanish translation of their website www.yourmortgageprovider.com.
The functionality of the site remains identical to the English version."Having a Spanish version of the website is very important to our company as it allows us to serve a growing community," said Bryan Sullivan, President of Financial Partners.
"We want to reach these individuals and give them an outlet to learn more about the mortgage process and take advantage of the site's features."The website itself is designed to educate visitors about the mortgage process and the different products in the industry.
In addition to a comprehensive mortgage glossary, a step-by-step description of the home buying process and information about how credit affects a mortgage, the site also has several...
Mortgage > Financial Partners Releases Spanish Version of Mortgage Website
Stop Money Worries Killing You!
Copyright 2006 Christopher Green
Recently, as I was surfing around the web, I found yet another website offering misguided, uninformed and irrelevant advice to people who are stressed, depressed or anxious. The site had the following advice for sufferers:
"Most people who become stressed, anxious or depressed do so because they are experiencing financial difficulties. Debt is a big problem for a lot of people, and many struggle to service debts because they are on a low income. Other factors include poverty, unemployment, and a feeling of worthlessness because financial aspirations haven't been met. Money is one of the biggest causes of stress and depression in the Western world."
It is a statement I have seen and heard from many people, from medical professionals to sufferers and of course, in many publications and websites.
I'm sure you too will have either been told money is the root cause of your problems or heard it from various sources.
Mortgage > Stop Money Worries Killing You!
Save Big On Your Mortgage
(NC)-Did you know that when you take out a fixed-rate mortgage, you're paying a big "safety premium"? That's because banks usually set their fixed rates at considerably higher levels than their variable rates. They do so to ensure that a fixed-rate mortgage will still be profitable for them if interest rates rise.If you're a potential homeowner, you should ask yourself if that premium is worth paying. It may protect you if interest rates spike up suddenly. But if they don't, you may end up paying thousands of dollars in extra interest. That's an expensive insurance policy.Historically, variable-rate mortgages have proven to be cheaper than those with fixed rates over the long term.
Even if you feel that interest rates will rise in the near future, you should take a long-term perspective. With a variable rate mortgage, you are usually starting out at a lower rate to begin with, and you will benefit from any decreases in interest rates that occur in the future.Banks and other financial...
Save Big On Your Mortgage
Mortgage > Save Big On Your Mortgage
There's More To Making Money Than A Tertiary Education!
An education of some sort is a prerequisite these days if you want to start a secure career in whatever field you choose. However, have you thought about where this will get you exactly? Will it help you achieve all your dreams in life, both financial, physical, emotional etc?This article is focusing on the financial and lifestyle dreams that you may have.Don't get me wrong though, being a teacher, I strongly believe that a good education is vitally important. I don't believe, however, that an education at University, TAFE or any other tertiary institution is enough to enable most people to achieve their goals and dreams in life.Let's see what normally happens when you gain that valued education.You get a job in whatever area you are trained for. Then you buy a new car and perhaps a new house. This is ?The great Australian Dream' and possibly the dream of many other countries too.These are all great goals to have, but if you want to achieve more than being in the ?rat race' for the rest...
There's More To Making Money Than A Tertiary Education!
Mortgage > There's More To Making Money Than A Tertiary Education!
Pricing your House To Sell
Your asking price is likely the most difficult - and crucial - decision you'll
make when you put your house on the market. Ask too little and you risk leaving
money on the table unnecessarily. Ask too much and you may scare off potential
buyers. Most Sellers set their initial asking price at an amount somewhat higher
than they are actually willing to accept, fully expecting a buyer to open the
bidding with a lesser amount. While price is the most frequently negotiated item in any home sale, you may
be able to creatively provide financial value to your buyer - without lowering
the price alone.
- major appliances such as your stove, fridge, dishwasher and microwave offer
good negotiating power - while you'll likely be including some of them in
your asking price, consider excluding some from the listing (the washer and
dryer perhaps) to use as a future bargaining chip; - window...
Mortgage > Pricing your House To Sell
Mortgage
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