From owner-doc-jp@jp.FreeBSD.org Wed Nov 25 08:03:44 2009
Received: (from daemon@localhost)
	by castle.jp.FreeBSD.org (8.11.6p2+3.4W/8.11.3) id nAON3ic61822;
	Wed, 25 Nov 2009 08:03:44 +0900 (JST)
	(envelope-from owner-doc-jp@jp.FreeBSD.org)
Received: from test.com (skellyhome.org [220.231.180.250] (may be forged))
	by castle.jp.FreeBSD.org (8.11.6p2+3.4W/8.11.3) with ESMTP/inet id nAON3iC61817
	for <doc-jp@jp.freebsd.org>; Wed, 25 Nov 2009 08:03:44 +0900 (JST)
	(envelope-from thebullandbearobserver4@gmail.com)
Received: from fls-9e466565812 ([220.231.180.250]) by test.com with MailEnable ESMTP; Mon, 23 Nov 2009 02:32:46 +0800
Message-ID: <4153-220091102218324678@fls-9e466565812>
To: "A1" <thebullandbearobserver4@gmail.com>
From: "The Bull & Bear Observer" <thebullandbearobserver4@gmail.com>
MIME-Version: 1.0
Content-type: text/plain; charset=windows-1252
Content-Transfer-Encoding: quoted-printable
Reply-To: doc-jp@jp.FreeBSD.org
Precedence: list
Date: Mon, 23 Nov 2009 02:32:46 +0800
X-Sequence: doc-jp 74078
Subject: [doc-jp 74078] Bull & Bear - Housing Market 
Sender: owner-doc-jp@jp.FreeBSD.org
X-Originator: thebullandbearobserver4@gmail.com
X-Distribute: distribute version 2.1 (Alpha) patchlevel 24e+060209

Clearly, the folks in the UK have gone completely insane=2E  Having gone t=
hrough the recent housing crisis and seeing what happens when you lend mor=
e than what something is worth, they are going back to the well and doing =
it again=2E  The article below outlines how home owners in the UK are bein=
g given 125% mortgages on upside down properties=2E =20

I believe the mortgage business has dried up completely in the UK and this=
 is a final ditch effort to drum up some business=2E  This is the moral ha=
zard incurred when you bail people out=2E  They get more reckless because =
they expect the government to come in and =93save the day=94 with tax paye=
r money=2E

The question is, how long will it be before we import this marketing plan =
to the US=3F!=3F!  BTW, the FHA has already started doing 5% down loans fo=
r new buyers=2E  Clearly, this is only the beginning=2E


Times Online
James Charles

Mortgage brokers have welcomed moves by Coventry Building Society to offer=
 125 per cent loan-to-value mortgages to existing customers who need to mo=
ve house=2E=20

The UK's third largest mutual is to offer the controversial loans to custo=
mers in negative equity with an "excellent credit history"=2E Their existi=
ng loan will effectively be "ported" to the new property=2E No additional =
borrowing is allowed=2E=20

It follows a similar move by Nationwide Building Society, the largest buil=
ding society in the UK and third largest lender in July=2E=20

Borrowers in negative equity, with a home worth less than their mortgage, =
are commonly "trapped" in their homes and unable to move until they have p=
aid down their debt=2E=20

There are about 900,000 homeowners in negative equity, according to the Co=
uncil of Mortgage Lenders, the trade body=2E Borrowers on higher loan-to-v=
alue deals have been hit by the slump in house prices, which has seen valu=
es slump by 25 per cent from the peak in 2007 to bottom of the market earl=
ier this year=2E=20

Aaron Strutt, of Trinity Financial Group, a broker, said: "Having more fle=
xible criteria for existing customers in negative equity will make them fe=
el less trapped=2E If both parties will be in better financial positions t=
hrough porting the existing deal to another property, it is a no brainer=2E=
 We should see more lenders helping their customers in this way=2E"=20

Colin Franklin, sales and marketing director at Coventry, says =93As a mut=
ual this is what our members expect of us=2E We are offering a sensible le=
vel of support to people we have a relationship with who are facing real d=
ifficulty in moving home=2E=20

=93The Coventry is known for its responsible lending and for treating cust=
omers fairly and while this move may only affect a few of our members it i=
s a great example of where we are doing both=2E=94=20

Nationwide allows existing customers to take out a home loan with a loan-t=
o-value ratio of up to 95 per cent on a three-year fixed rate of 6=2E73 pe=
r cent or a five-year fix at 7=2E48 per cent=2E It then allows customers t=
o borrow an additional 30 per cent at a rate of 7=2E23 per cent and 7=2E98=
 per cent=2E=20

On a separate note:

Last week we briefly mentioned how Britain was now =93actually insolvent=94=
 compared to being =93technically insolvent=94 when it went begging to the=
 IMF in 1976=2E As we explained:=20

=93In 1976, the UK government went begging to the International Monetary F=
und (IMF) for =A32=2E3 billion=2E In today=92s money that=92s the equivale=
nt of around =A312=2E4 billion=2E At the time it was labeled as an embarra=
ssment for the UK, with claims it made the UK technically insolvent=2E Wel=
l, in practical terms apart from the much bigger number, there is little d=
ifference between the =A32=2E3 billion bailout in 1976 and yesterday=92s a=
nnouncement that the Bank of England will increase its money printing prog=
ramme to =A3200 billion=2E=94 You=92d think that would be enough to get th=
e financial markets concerned with what=92s happening in the UK and global=
 markets=2E Wouldn=92t you think that if a nation is unable to pay its bil=
ls with free cash flow that the alarm bells would start ringing=3F=20

- Moneymorning=2Ecom=2Eau=20



If you are not interested in receiving these emails, simply click the link=
 below and TYPE the address you want to be removed from our database=2E =20=


http://thebullandbearobserver=2Einfo/remove/index=2Ephp=3Femail=3D

(Please allow us up to 7 days to process your request=2E)


