"How the Grinch Stole Christmas"
December 11, 2008
"How the Grinch Stole Christmas" is one of the popular Dr. Suess books. Obviously, the Grinch gets converted and all ends well. I thought that I would play around with attaching a word to the letters Of G-R-I-N-C-H. Could it be:
G - Government
R - Regulators
I - Intervene
N - No
C - Christmas
H - Holiday
??????????????????????????????????????????????????????????????????????????????????
Certainly the year 2008 and especially the last several months, we have seen government officials intervene in the housing, the credit and now the automobile crises. Unlike the Grinch, I believe that their intentions are to save the economy and to save homeowners, lending institutions and a portion of the manufacturing sector. A year from now, we shall have some indication of the success of their interventions.
Since this is primarily a blog about real estate, let's look at some of the actions that have been taken. First, the government backed loan limits were raised to make refinancing of high balance loans possible. Interest rates have been kept at historically low levels. The HOPE NOW program was instituted as an effort to counsel agencies and mortgage servicers to modify loans on a strictly voluntary basis. Borrowers who had the toxic "Option ARMS" could call 1-888-995-HOPE and for $300 they were to be assisted in negotiating a recast loan from their lender. Thus far, it has not accomplished much of what it was established to do. If the restructuring of mortgages is successful, homeowners will be able to retain their homes with more affordable monthly payments and, if the future reassembles the past, the value of the property will come back to the purchase price. Think about it, if you rent, you do not consider the value of the property you are renting. In some ways, making a mortgage payment is similar to renting. The government Grinch is really working very hard to not steal your holiday. Some of the efforts will require homeowners, lenders/investors and manufacturers to participate in these efforts. Homeowners need to want to stay in their homes; lenders/investors
need to want to exxtend credit; and manufacturers need to create revised business plans. Together we can defeat the negative GRINCH.
"How the Grinch Stole Christmas" is one of the popular Dr. Suess books. Obviously, the Grinch gets converted and all ends well. I thought that I would play around with attaching a word to the letters Of G-R-I-N-C-H. Could it be:
G - Government
R - Regulators
I - Intervene
N - No
C - Christmas
H - Holiday
??????????????????????????????????????????????????????????????????????????????????
Certainly the year 2008 and especially the last several months, we have seen government officials intervene in the housing, the credit and now the automobile crises. Unlike the Grinch, I believe that their intentions are to save the economy and to save homeowners, lending institutions and a portion of the manufacturing sector. A year from now, we shall have some indication of the success of their interventions.
Since this is primarily a blog about real estate, let's look at some of the actions that have been taken. First, the government backed loan limits were raised to make refinancing of high balance loans possible. Interest rates have been kept at historically low levels. The HOPE NOW program was instituted as an effort to counsel agencies and mortgage servicers to modify loans on a strictly voluntary basis. Borrowers who had the toxic "Option ARMS" could call 1-888-995-HOPE and for $300 they were to be assisted in negotiating a recast loan from their lender. Thus far, it has not accomplished much of what it was established to do. If the restructuring of mortgages is successful, homeowners will be able to retain their homes with more affordable monthly payments and, if the future reassembles the past, the value of the property will come back to the purchase price. Think about it, if you rent, you do not consider the value of the property you are renting. In some ways, making a mortgage payment is similar to renting. The government Grinch is really working very hard to not steal your holiday. Some of the efforts will require homeowners, lenders/investors and manufacturers to participate in these efforts. Homeowners need to want to stay in their homes; lenders/investors
need to want to exxtend credit; and manufacturers need to create revised business plans. Together we can defeat the negative GRINCH.
posted by shirley harry at 8:25 AM
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