Making the news today – "Vote Yes on 1 – Save Our Homes NOW" momentum is growing – but can subprime mortgages or foreclosures accomplish the same thing? What will the Federal Reserve do today? [Read more...]
Naples Florida Real Estate News – 09/17/07
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Are you considering buying real estate? Where are interest rates going in the long term? Other positives to consider…. [Read more...]
WARNING: Beware Of Foreclosure Scams
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Are you facing foreclosure? If not, you might know someone that is facing foreclosure, considering a high percentage of people know someone facing foreclosure.
Today, there are hundred’s of companies springing up all over the country purportedly foreclosure rescue companies.
The Internet maybe a wonderful tool to gather information however in today’s environment it can be used for taking advantage of people by individuals lacking good moral and ethics. How does this happen?
Naples Florida Real Estate News – 09/10/07
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Paying your risky ARM timely? You might want to read about FHASecure. Is the My Safe Florida Home program coming to Naples, Bonita Springs or Estero? Which mortgage companies are eliminating jobs now?
What is Liquidity?
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Today, DJ Gardner from First Magnus Financial explains what liquidity is for lenders and why it is important to you, if you are thinking about purchasing a home or condo in today’s real estate market.
What happens when Investors, overnight, stop investing in certain types of loans? First, Lenders stop offering them. We have seen a lot of this lately. Next, Lenders that had made these loans, now have nowhere to sell them. Their warehouse sources make margin calls, forcing the Lenders to come up with cash. But the Lenders need to sell the loans to get the cash. If the Lenders do not have other sources of liquidity they may be forced out of business. We have seen a lot of this as well. Many very fine companies could not meet their margin calls. The next thing is what we began to see this week. Investors, mutual funds, hedge funds, etc. need to mark their assets to market every day. If no one is buying a particular asset, the value of that asset is difficult to determine. Fund managers cannot distribute fund assets, if they do not know the value of the fund. So they deny withdrawals from the fund causing fund investors to hold what assets they can get their hands on in highly secure, highly accessible investments.
This is a liquidity crunch. This week, the Fed and other central banks around the world have helped as they can, by providing more money in the banking system. In the weeks to come, they may choose to make it easier for banks to borrow money by cutting discount rates. The US market now believes the Fed will cut its discount rate before the end of September.