Rising home re-sales pending point to a collapsing residential real estate market – how do you protect your equity in your home?
Marla Guthrie
Jul. 2, 2007

The rising pending re-sales of existing homes (data out today) shows how bad the real estate market is. The home prices are falling slowly but steadily. The residential real estate market is in real doldrums. The biggest question is: how can you protect the equity in your home in a falling market like this?

If you own and live in your home, try to pay of the mortgage as soon as you can. You should negotiate, take help of your attorney, appraiser, and the tax court to try and reduce your real estate property tax. The property tax is normally broken into two parts – the land and the improvement. You should challenge both because as the valuation of your property comes down, you should pay lower taxes. Take that tax savings and pay some part of your mortgage to increase your equity.

Negotiate with your mortgage holder and get a better rate. Banks are eager to help you if you are persuasive. If you mortgage is held by a large bank, you can be on phone for many hours before any one responsive can talk to you.

Given the bubble burst and declining real estate market, it is essential that you pay off your mortgage as soon as possible. There will very high unemployment in 2009-2012.

ISM manufacturing index stagnates – what is the effect on economy, stocks and bonds?
Bernie Snyder
The conomy is stagnating with high inflation from Asian emergence of prosperity. Commodity inflation and Asian wage inflation are the root cause of the stagflation. Stagflation lowers the standards of common hard working people – the middle class.
READ MORE>>

Rising home re-sales pending point to a collapsing residential real estate market – how do you protect your equity in your home?
Marla Guthrie
You should challenge both because as the valuation of your property comes down, you should pay lower taxes. Take that tax savings and pay some part of your mortgage to increase your equity.
READ MORE>>

Collapsing factory orders manifest stagnation in economy fast deteriorating to recession – what are the effect on bonds and stocks?
Alan Hershey
The factory orders number really shocked the financial world. This is another indication that the economy is stagnating and possibly headed right into deep recession.
READ MORE>>

Mortgage defaults; foreclosures, and falling real estate creating a financial fireball that can create bank failures and meltdown of the financial system
Fred Day
It will take the stock market, the corporate bond market and the real estate market with it. The huge Federal budget deficit and trade deficit and almost defunct Social Security Funds will not allow the Fed to resume this time.
READ MORE>>

The stagflation making gold ready for a solid bull run along with oil – should you sell the bonds?
Joe Weinman
Analytics, fundamentals, and technical charts point to the increase in the longer end of the yield spectrum and lower short-term rates. That means you should sell your bonds with two or more years left in maturity and but short-term notes and bill.
READ MORE>>

Oil, sugar, cocoa, and cotton options spread can make your Roth and traditional IRA returns exceed 100% a year
Peter Oberois
Crude oil, sugar, cocoa, and cotton futures are in raging bull markets. The deep in the money call spreads or an arbitrage position of long the future and way out of money put and short a deep in the money call option can provide handsome profit.
READ MORE>>

MORE ARTICLES >>