Will Hyper Inflation Follow?

Click on the title to link. You are going to have to register on this site in order to read this article, but I assure you it is worth it. Inflation is one of those things we have been warning is coming. You have got to be realistic and prepared for it. Check out this article discussing what hyper-inflation may look like for us.

Mortgage Payment Grace Period shrinking?

With the financial reform changes beginning to take affect, it's no surprise to hear that Bank of America is changing its grace period policy. After all, there will be a huge loss of revenue from profit centers such as overdraft fees. Beginning February 14th, unless you do your personal banking with B of A, the grace period for paying your mortgage serviced by B of A will shrink from 15 days to 9 days. If you have a B of A mortgage AND you do your personal banking with them, the grace period will remain at 15 days; BUT, a payment after the 9 day period will incur a $6 fee (Click the title above for related article).

There's certainly room to question this from an ethical point of view. Bank of America made an agreement to allow a 15 day grace period - is it right, or even legal, for them to change this for existing borrowers? My hunch is that this transition will occur with little resistance.

Something else to consider is whether other institutions will follow suit. I would guess the number of borrowers who wait as long as they can before paying is substantial, which means potentially huge revenues from late fees are at stake. It's going to be real difficult for the other guys to pass up this opportunity.

Some argue this is no big deal. We should all be making our payments "on-time" regardless. Either way, you may want to keep an eye on the flood of correspondence coming from your mortgage servicer to be sure you're aware of a similar change if it comes.

Foreclosures Spread

Click on the title to link. I cannot imagine that anybody reading this blog would be surprised by this, but an interesting article about how foreclosures have "spread" into areas there were previously not as affected. Of course there is probably no area unaffected, per se. But interesting to read about, none the less. This kind of news will continue throughout the year.

Prepare for Inflation Fight

Click on the title to link. Another article talking about the growing inflation problem. Jubak is a good writter. Check it out.

Housing Market Holding Back Economy

Click on the title to link. Not sure we completely agree with this. There are plenty of things holding the economy back (unemployment, inflation, socialism, etc.). But this certainly is not helping, no doubt.

Our Next Economic Worry: Inflation

Click on the title to link. We have been warning folks that this was coming, but you should be informed. Inflation is the "elephant in the room" that nobody seems to be talking about, until now. With the Feds doing what they are doing (which they clearly don't know what they are doing), inflation is inevetable. Stay alert and educated.

8 Tips for Choosing a Foreclosure Attorney

Click on the title to link. Hopefully you will not need this, but just in case...

Foreclosure Record in 2010

Click on the title to link. We cannot imagine this would be surprising to anybody, especially if you read this blog, but 2010 was a record year for foreclosures. What may be surprising to you is 2011 will be worse.

The article says 5 million people are currently two months behind on their mortgage payment. It could get more ugly real quick. The thing is people will lose their will to fight it. Why bother holding on when your house is upside down anyways? Not that we are for that mind set, but it is tough to get past it if you are in that situation and struggling.

8 Keys to the Mortgage Market in 2011

Click on the title to link.

We find it quite funny how the government seems to think that more and more regulation is the answer (see Keys #1 and #2). This has proven so far to help some, yet make doing and getting mortgages extremely difficult. At times it has prevented folks from getting a mortgage that would be very helpful to them, or has punished folks by making it more expensive for the customer or us. It's not right. Does the government honestly think that "mortgage disclosure reform" is the answer? Are you kidding me? Yeah, that was the reason for the real estate/mortage mess. If they honestly think that then we are in big trouble.

Numbers 3-8 are so "pie in the sky" right now that it is almost laughable. Basically they are saying everything needs to get back to what it was and then it will be alright. Wow, that really insightful "keys" you all came up with. Not going to happen, folks.

There is one primary key to the mortgage market this year and that is the Federal Reserve (Key #8). Their "Quantitative Easing" plan is so full of holes that it could not hold water if it wanted to. Frankly, we are relatively convinced that the Reserve does not know what exactly to do because they are running out of options. Flooding the economy with Billions of dollars is not going to lower rates. It is, in fact, going to raise rates (as it has quickly done). Then when inflation kicks in what is going to happen? Rates will go higher, faster. Why the Feds do not seem to get this is utterly beyond us. But it's simple economics.

How To Bid On A Foreclosure

Click on the title to link. If you are thinking about buying a house, and may be interested in looking at a foreclosure, then you need to check this article out. It may not be the easiest process, but you can certainly get some good deals going this route.