Housing Crisis; what some don't know

As all of you know the US is facing one of the toughest economic times since the great depression. The stock markets are not holding any value and the housing market has completely crashed. So what brought this on. Was it really the mortgage brokers, or did it go further down the line to the government?

In the late 1990's the government and building officials passed laws that regulate the housing industry. Not the traditional site built homes, but the manufactured homes. Before all of this, banks would not lend money for these homes. The best you could do was get a 15 year mortgage on one of them, and by the time the loan was paid off, the home had no value. So it was hard for a manufacturer to sell a home. After a lot of the laws changed in the 1990's if you owned a home built before 1994 it was basically worthless anyway. They said that the new standard that they were implementing made a safer home. By marketing these new standards to banks and mortgage companies, and with the help of a lot of lobbyist, banks started lending money for people to purchase a manufactured home. And the prices of them sky rocketed.

All of the sudden you start seeing the home manufacturers advertising like crazy. They were making so much money that they even got involved in Nascar as a sponsor. And the mortgage brokers had a window of opportunity to make a lot of money. Banks and investors also were blinded by the thought of all the money they could make from the interest on these loans. Investors start dumping money in and it seemed that just about anyone in America could now own their own home. The housing market was booming. But with manufactured homes, not traditional site built homes.

So what happened to cause what is happening today with the foreclosures? First of all, although they had new regulations and rules for how these homes were built. There was no study about what the value of the home would be ten years down the road. And the new home buyer was blinding by the excitement of owning a home that they did not look at that either. So new home buyers ended up paying on a home for ten years just to find out that there home is worth less than what they owed on it. If they got in any kind of bind, selling it was not a option. Secondly, the prices that they were paying was just outrageous. People were paying 150k plus for a new manufactured home. With the interest rates that they were paying, the average payment was over 700 bucks a month. Over 10 years these people had paid 80k on a thirty year mortgage, still owed 160k but their home was only worth half of what it was valued when they purchased it.

So what did most people do, bankruptcy. They walked away and said the heck with it. But what about the ones that are trying to keep their homes? They are basically stuck. Their credit is tied up because they owe more on a home than it is worth. Their income was never at level were they could afford a home and save at the same time, and most are in debt up to their ears with all the credit cards that the banks sent them because they were a home owner. That's right, go get a loan for a new home, you will have ten credit cards in your mail box the next day.

So who got rich off of the housing mess? The mortgage brokers not the banks. They were paid by commission to obtain these loans. The manufacturers also received their share of the money also. Most of them have closed their doors now. They took their money and run. Now who has to pay for all of this, the taxpayers.

This is just one of the many shady deals that the government and lobbyist pulled over our heads. And there is no way possible to increase the value of these homes, they were not worth it to start off with.

Debt Consolidation

Bills.com is another debt consolidation site that can help you get out of debt. They go through all of the options with you, including bankruptcy, loans, or having you bills restructured through credit renegotiation or counseling. Sometimes these sites seem to good to be true, but they really can help a lot of people. There are many laws out there that protect consumers. Some of these laws are not readily available because most businesses want to keep them quiet. They want to lose the least money they can. But when you are in debt and see no way out, you have to do things in order to survive.

When looking into debt consolidation you need to make sure you protect your credit in the long run. Some options sound good in the beginning, but years down the road you might find yourself further in the hole than you started. So researching all the options is always the best way to go. When a person or family starts thinking about debt consolidation, it is usually because they have to much strain on their wallet. This strain can cause a lot of problems. It is better to start looking for a solution sooner than later. Because when you put off getting out of debt, then it never happens. Take a look at bills.com if you are in debt. They might have the answer that you have been looking for.

Contest at Cheth Studios

This blog review is going out to Cheth Studios. There is also a big contest going on there. And I am one of the sponsors.

Cheth Studios is not a money making blog. That is not the purpose at all. I had a chance to ask the owner what was the purpose of Cheth Studios, this is what was said,

My sole purpose is to try and make friends on the blogosphere and interact with them and keep learning new things, that is why you can see some blogger help topics on my blog so that my little knowledge comes in handy for others.

I also asked why he blogged

Well my blog chethstudios is just a small dream to share my views, as you know it is a mixed blog and I don't restrict my post to any particular topic. And the most important thing is I don't blog for money I just do it for fun.

So now you know a little about the author, why don't you go and sign up for the contest. There are many prizes and there is more than one way to enter. Sign up today, you just might be one of the lucky winners.

Going back to School

Have you ever thought about going back to school? It is really a lot of fun for me. Being in my forties I was a little skeptical about it, but it is not that bad at all. One of the hardest decisions that I had to make was choosing which school to go to. Of course that is always a difficult decision.

There are many places that you can get a degree from. You have your traditional schools and community colleges. Or you can seek a online degree. I am doing a little of both. Online schooling is very popular these days. More and more people are attending in hopes of getting a better job and a better education. The work force world wide is getting so technical, you just about have to have a degree to get any type of good paying job.

There are many places that you can go to check out what is out there. Places like Degree Hound offer a easy way to search for that perfect school. I am working on a degree in Information Technology. My first blocks of classes have been all writing and distance learning classes. And I am really enjoying it. I wish I had liked school this much when I was in High School. But you know how that is, I was too busy chasing women around. But now that I am over forty and starting to grow up, school is more entertaining than the women. At least for now.

Looking for Crew Members

My good friend Kat at toughgirl101 has been hired as a Izea Insider. She needs to bring together a blogging crew. She has set up a community and is looking for all the Izea members that she can get to sign up. There will be some good benefits for the members. If you are a payperpost postie or a social sparker, give Kat a visit and sign up for her crew. This could be a lot of fun for everyone.

Improve your Credit?

Do you know anyone that has ever had a credit dispute? Usually when this happens they will immediately file for bankruptcy. More people have filed in the past few years than ever before.

The economy is bad; and many people have really messed up their credit because of it. When you have as many foreclosures that the US has had, new home buyers are trying to desperately improve credit scores in order to get a loan. But the banks still are not lending that much out. Credit Repair seems to be a lot easier than it is to improve credit these days. Because the banks are really stingy when it comes to money.

I know of people that has went through both scenarios. The ones that chose to repair their credit and not file bankruptcy ended up a lot better in the long run. I just hope that someone can repair this economy, to many people are at risk, and that is just not right.

Kimmy Sharing the Light

This is a blog that I recently started reading a couple of weeks ago. I cannot say a whole lot about Kimmy. Mainly because Kimmy usually leaves me speechless and thinking after I read her blog. She also has one of the most beautiful templates that I have ever seen on a blog.

Some blogs that I will show on here will not need a review, it just needs to be visited. This is one of them. I am going to close this with what Kimmy has to say about her blog.

If you always do what you've always done... you will always get what you've always gotten.

I embrace change, imperfection and the ups and downs of life. I live for accountability and enlightenment. I started this journal when I lost a friend of mine. He felt there was no way out. He felt that circumstances could not be changed.

Soul searching and self discovery comes from within. However, much can be learned from everyone around you. I find that with a record of events, one can seek to learn from previous steps and stop running the same circle. Getting the facts on screen makes it easier to see my accomplishments and failures.

"All mentors have a way of seeing more faults than we would like. It's the only way we grow." Padme

Life is what you believe to be true, it's your journey. Light is the ability to change one's self!! You are the only one that creates your reality!!!