There is a new scam out involving reverse mortgages that everyone needs to be aware of as it doesn’t affect just senior borrowers. It seems that in their effort to constantly find a way to beat the system, there are some who are looking for ways to use senior borrowers and reverse mortgages to flip properties...

The economic crisis has spread into many areas of the U.S. economy--banks, investment firms, insurance companies, and even the oil markets. But as VOA's Kent Klein reports from Washington, experts seem to agree that the trouble started with bad loans in the housing industry, and grew into a widespread crisis of confidence.

Here is my mortgage nightmare. Like so many things in the Bush administration the full truth is not being told.

The short answer whether Treasury Department can take over Freddie Mac and Fannie Mae is: “yes”, initially the government can do whatever they want to do. The long answer is “no”, it’s not that easy.

The Wall Street Journal is reporting Treasury Is Close to Finalizing
Plan to Backstop Fannie, Freddie.

Even with the analysts trying to put a sunny face on the credit mortgage crisis we are still not out of the woods yet. We have had another bank failure and we’re still looking at billions in write downs.

It’s nice to see the mainstream media cover more of the voices outside of the bottom callers who keep tripping over each other to be the first one to call bottom.

The Wall Street Journal reports this morning that five of the largest credit unions are reporting paper losses on mortgage holdings large enough to wipe out all of their equity. The credit unions respond that the losses are merely temporary and that they fully expect for the market to rebound.

The New York Post is reporting that a large sovereign wealth fund is angling to buy up US property on the cheap. With a weak dollar and REO piling up, these foreign funds are looking for 50-cents on the dollar discounts in American residential and multi-family property.

As a free market advocate I am concerned about federal bailout of private financial firms whether it is Bear Sterns, Long Term Capital or Fannie Mae and Freddie Mac. What was the SEC and other federal regulatory agencies (OCC) doing when these firms were engaging in ridiculous practices?

I have said numerous times that the main reason for bailing out the mortgage giants Fannie Mae and Freddie Mac was not for the US homeowner but for the Chinese who have bought a huge portion of our mortgage backed debt.

Foreclosure Trackers, Inc., a one-stop foreclosure resource for investors of all levels, will present a workshop titled “Defaulted Mortgages: Turning Foreclosures into Investment Income” on Thursday, Aug. 7 from 7:30-9 p.m.