Housing.com News, Analysis & Opinion: Wednesday Housing News

Why is insurance the one product you are required to own and the one product that is taken away when you finally use it?

Why, indeed? I've often wondered that myself. We're drilled with the notion that we have to have insurance in order to prevent personal and financial catastrophe, yet when we need it, it seems like the lender goes through more hoops than a trained circus dog to make sure you don't get your claim filled. ;)

Consumer Affairs.Com brings us the tragic tale of Stephanie Moore, a writer and consumer advocate who found her way into a new home after bankruptcy. This is a worthwhile and informative read in and of itself, and if this were a movie, the story would end on a happy note. Unfortunately, it doesn't turn out that way.

When it comes to shopping, save the impulse buying and retail therapy for the DVD sale at FYE or the shoe sale at Nordstrom's. If there was ever any financial decision that required thought, planning, meticulous study, and yes, copious saving, home buying is it. If someone as savvy as Stephanie can fall victim to the relentless blitz that home buying is a key to the kingdom, imagine what all the everyday folks falling victim to predatory loans are going through.

I want all of you out there reading this to buy homes. Yes, even you in the back there! I see you. :) Seriously, I want you all to be able to live the dream of ownership and investment, but I want you to do it smartly. They call it the "American Dream" for a reason, not the "Nightmare."

The Real Estate Journal has a very thorough breakdown of the tax panel's mortgage deduction plan. The general consensus seems to be that this would actually place more of the tax burden on jumbo mortgage holders in expensive areas of the country. Wow, a Bush tax idea that actually helps the middle class? Get me a chair, I'm about to faint.

As the pundits say, this proposal probably won't get more than a few feet in Congress before it's shot down, and the fact is that until housing prices fall appreciably, that $312,000 or so limit is well below the median prices of desirable locations in the country. But as I've said before, the big boom for housing seems to be in the Midwest, where that amount of money could definitely get you a decent home to live in.

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MSNBC's Bob Sullivan has come out swinging with his new blog, The Red Tape Chronicles, which covers consumer fraud, corruption, wasteful spending, and all the chaos that goes with it. Dig yesterday's look at FEMA busy signals, especially the comments section. The money quote was hard to pick out, but here's a winner: Why is insurance the one product you are required to own and the one product that is taken away when you finally use it? Why, indeed? I've often wondered that myself. We're drilled with the notion that we have to have insurance in order to prevent personal and financial catastrophe, yet when we need it, it seems like the lender goes through more hoops than a trained circus dog to make sure you don't get your claim filled. ;) Consumer Affairs.Com brings us the tragic tale of Stephanie Moore, a writer and consumer advocate who found her way into a new home after bankruptcy. This is a worthwhile and informative read in and of itself, and if this were a movie, the story would end on a happy note. Unfortunately, it doesn't turn out that way. When it comes to shopping, save the impulse buying and retail therapy for the DVD sale at FYE or the shoe sale at Nordstrom's. If there was ever any financial decision that required thought, planning, meticulous study, and yes, copious saving, home buying is it. If someone as savvy as Stephanie can fall victim to the relentless blitz that home buying is a key to the kingdom, imagine what all the everyday folks falling victim to predatory loans are going through. I want all of you out there reading this to buy homes. Yes, even you in the back there! I see you. :) Seriously, I want you all to be able to live the dream of ownership and investment, but I want you to do it smartly. They call it the "American Dream" for a reason, not the "Nightmare." If you're worried about whether or or not your lending history may leave you vulnerable to predatory lenders, Bankrate.com has a simple breakdown of what constitutes a subprime borrower. The Real Estate Journal has a very thorough breakdown of the tax panel's mortgage deduction plan. The general consensus seems to be that this would actually place more of the tax burden on jumbo mortgage holders in expensive areas of the country. Wow, a Bush tax idea that actually helps the middle class? Get me a chair, I'm about to faint. As the pundits say, this proposal probably won't get more than a few feet in Congress before it's shot down, and the fact is that until housing prices fall appreciably, that $312,000 or so limit is well below the median prices of desirable locations in the country. But as I've said before, the big boom for housing seems to be in the Midwest, where that amount of money could definitely get you a decent home to live in. Things that make you go "HMMMMMMMMMMMMMMMMM....."