Deutche Bank : Half of all Mortgages to be Underwater by 2012

New York According to Deutche bank half of all mortgages to be underwater by 2012.

The headline of this article poses the following questions,

•1.  What is that underwater mean? We know that an iceberg is mostly underwater and can do great damage. Obviously that underwater doesn't make it worthless.

•2.  If it is underwater whose problem is it the banks or the consumers.

Underwater mortgages means, that you owe more on the house then its value. In other words the collateral is not enough of a security to the bank, which leads me into the answer for the second question,

Whose problem is an underwater mortgage, and the answer is the banks /lenders. When a consumer buys a piece of property if it is for the long term which means 7-10 years time the consumer already profited.  1) Tax deduction on mortgage interest, depreciation on value regardless if it does in fact depreciate or not. 2) By owning property they hedged against inflation and the erosion of the dollar 3) appreciation and most of the time tax free.

The only who stands to lose in an underwater mortgage situation is the lender, because the lender has to factor in collateral and security for their money, and an underwater mortgage or a declining economy offers no security for them the recoup their money quickly. But don't worry for the bank they got other ways and techniques to stay in business most likely they will make it up in rates and upfront fees.Submerged in water

In summary my message is, don't let the headlines scare you, it is merely an estimate that lenders need to make for themselves and not yours the consumer. As long as your plan for real estate is long term which it should be, and you are working with a Certified Mortgage Planning Specialist who is capable of advising you on the most recent cutting edge financing techniques you're in good hand and continue to buy real estate because it will make you wealthy.

For a consultation you can contact

Joel Silberstein
Certified Mortgage Planning Specialist, CMP
www.mortgageplannerview.com

 

 

2 comments • Joel Silberstein Brooklyn NY Certified Mortgage Specialis • August 07 2009 12:44PM

Sold - Sold- Sold - Brooklyn, NY Building for Sale Fulton Street mall 573 Fulton Street. 11201

Fulton mall Property For saleBrooklyn, NY Building for Sale Fulton Street Mall 573 Fulton Street. 11201

 Price: $6,800,000 MLS#/Listing: 342752 Property type: Commercial Square feet: 30,000 Year built: 1915

This Brooklyn, NY Building for sale in Fulton Street Mall  is a 5 story brick building and Includes a total buildable 30,000 sq feet. Zoned as a CS-4-5. And sits right in the middle of the busiest commercial location in Downtown Brooklyn.

Price reduction from $8,000,000 down to $6,800,000. This is a give away price!!

Click here for a list of incentives to relocated your business to downtown Brooklyn.Downtown brooklyn Shopping Area

Downtown Brooklyn is a neighborhood located in Brooklyn bordering Brooklyn Heights and Clinton Hill.

Home to the third largest central business district in New York City, Downtown Brooklyn is a predominantly commercial and residential neighborhood known for its soaring office buildings and impressive skyline. Borough Hall, the Kings County New York State courthouse, Fulton Mall and the Brooklyn Academy of Music are just a few of the many cultural, commercial and municipal institutions found in the area.

The New York City Department of City Planning has approved a significant rezoning for portions of Downtown Brooklyn, including the Fulton Mall area, which may result in significant expansion of office space and ground-floor retail. The rezoning consists of "zoning map and zoning text changes, new public open spaces, pedestrian and transit improvements.

Transportation

Downtown Brooklynis connected with Manhattan by the Brooklyn and Manhattan Bridges. The neighborhood has extensive public transportation accessibility; it is served by the New York City Subway by the 2, 3, 4, 5, A, B, C, D, F, G, M, N, Q and R lines, many one stop from Manhattan. The Long Island Rail Road stops at the Atlantic Terminal, located at the intersection of Atlantic and Flatbush Avenues.

For a list of Downtown Brooklyn events click here.

For a lit of Shopping In downtown Brooklyn click here.

Listing Agent: David J. Weiner (718) 207-2403 DaveW05@davidjweiner.net 
Call today and present all approved funding to Schedule an appointment.

To discuss Financing options on this property
Contact Joel Silberstein
Certified Mortgage Planning Specialist
The Silberstein Group
917-660-3630
We are located in Brooklyn NYAlready Sold

0 comments • Joel Silberstein Brooklyn NY Certified Mortgage Specialis • August 05 2009 05:42PM

What causes foreclosures? Excessive borrowing, not home price declines

Check out this info below if you want to plan to avoid forclosure.

The key is to know the consecuence and not to look for someone to blame.

Via Spencer Rascoff (Zillow):

An interesting paper from several economists including two from Fannie Mae studies the causes of foreclosures in Southern California over the last few years. The paper seeks to determine whether it was home value declines or excessive borrowing at the time of the purchase and in subsequent refis that cause foreclosures. This is the sort of question that's fascinating to economists and academics but doesn't matter much to the homeowner who finds himself out on the street. But it does have important policy implications and it's helpful for us to understand as we start to post mortem the housing crash of the last few years.

Their conclusion? Excessive borrowing is the culprit, more so than home value declines:

"While capital losses resulting from the house prices declines that began, in most cases, in 2006 contributed to incidence of negative equity, excessive borrowing was clearly an equally important contributory factor. In addition, while house price declines were important in explaining the incidence of negative equity, its magnitude was strongly influenced by increased debt usage. Hence, borrower behavior, rather than housing market forces, seems to be the predominant factor affecting outcomes."

 

Impact of Negative Equity on Foreclosures
0 comments • Joel Silberstein Brooklyn NY Certified Mortgage Specialis • August 05 2009 11:11AM