Saturday, December 28, 2013

The Wake Up Call – The HELOC Horror Revisited 10 Years Later

U.S. Subprime lending expanded dramatically 20...
U.S. Subprime lending expanded dramatically 2004-2006 (Photo credit: Wikipedia)

Richard Martin

HELOCs from before the financial crisis are about to reset to fully amortizing loans. The figures are astronomical and many – if not most – of those with HELOCs are probably unaware of the huge hikes in monthly payments which await them. The real estate nightmare takes on a new lease of life on January 1. Many will simply stop paying and continue to pay the first mortgage. These loans cannot be written down, they must be written off. What’s so terrible about deflation? Why do governments in a time of crisis always seem to want you to pay higher prices? Not to worry, though. They can never win that game. Some choice words on the Federal Reserve, 100 years old last Monday. End-of-year spending continues to drop. Young Americans are certain to enjoy lower living standards than their parents. America has lost its moral compass and with it its credibility. More on Las Vegas real estate.
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