I Will Pay for My Home with My Money Tree

Once again the dreadful housing market deli-ma has returned with higher numbers than before. Remember back in the summer when the Obama Administration was so happy to announce that the housing market was showing signs of improvement? Well I will have to agree that sales were showing an upswing on many mortgage charts. Now follow me carefully because this is where the numbers of improvement came from.

With the money that you and I as Americans gave and I use the word gave in a politically correct way here. This money was handed freely like the fruit of life to banks and lender's with the stipulation that we would see it's application toward good credited borrower's. Well to the amazement of all, the institutions did screen this time around and the borrower's did have good credit ratings. Now here is where it gets tricky. The numbers that the housing market reflected were those of buyer's. What about those who were still in homes and fell under foreclosure or behind in payments? I'm not talking about the high risk sub-prime's that started this whole mess to begin with. These were good traditional fixed rate loans

Oh! Here we go... The housing report for September is now in. According to the mortgage bankers group about
4 million home owners are either in foreclosure or at least 3 months behind in their mortgage payments.
Where did these numbers come from. The Government didn't say anything about a decline in current home ownership due to a failing economy with rising unemployment. Why was this? Because the current administration wanted to show a plus in the public eye and convince us that throwing good money at bad was actually paying off in the housing market. So they took the report's of good lending and made it public to fuel their we are making a change campaign and hoped the bad would not come out till later after their agenda's were finalized.

Let's say for a second that you had an intelligent person in charge of... well let's say the Mortgage Banker's Association. They are reporting the foreclosure rate and default. Now let's say your Jay Brinkman the chief economist for this organization and after you report these declining numbers in almost the same breath you make this statement, "there's a lot of potential inventory coming into the market next year". Do you stop and scratch your head next? WOW! I don't know if it's arrogance or if some one can really be that naive.

Guess how many of these homes fell into foreclosure due to unemployment? The total for last quarter was a nice 33 percent of the new loans not old ones. Unemployment I was told by a transparent Obama Administration was improving. But there is a super genius from the Mortgage Bankers Association that reported himself that 33 percent of all new loans have defaulted. So he does see the reality. So why would he make a statement that there will be new inventory on the market next year. Are we going to start growing money trees to due away with unemployment so people will have money. Or will there be a new IOU policy handed down which states (just pay us back when you can).

It all makes more sense to me now how we got in this mess to begin with. The lesson learned is float numbers inflate them a little to ease the tension and when the bottom falls out of it release the actual figures.

Source: Associated Press