By A.B. Dada

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Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Gershburg is a NACA member, an organization I speak very highly of who defends consumers from junk debt buyers and other collector nightmares.

On his blog, Gershburg covers a topic that we’ve spoken about lately: short sales. Gershburg introduces a new thought in the mix:

Furthermore, the remaining balance of the mortgage would be forgiven by the lender and she would be able to live in the house, albeit with a new owner, until such time as she had the funds to repurchase the house. The description is insane.

Read the rest of this article titled Short sale to investor who rents to previous homedebtor? at the Housing Bubble site.

By A.B. Dada

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Used home sellers for recent years were tricked into believing their homes were worth more than they probably should be: some people bought homes at a huge price, others extracted equity using loans or lines of credit. As the housing market returns to realistic figures, prices are falling, leaving some homeowners upside down on their loans. These people are the most likely to default on their mortgages and lose their homes to foreclosure.

But not every homedebtor bought more than they could afford, many still have equity or are not too underwater. When homedebtors hold to previous year’s ridiculous pricing, the news media loves to quote a common phrase used: “We’re not going to give our house away.”

Read the rest of this article titled Sellers won’t give their house away: smart at the Housing Bubble site.

By A.B. Dada

To free market economists, such as myself, the term inflation means one thing: the increasing of the money supply. In simple terms, this means creating more money than was previously in existence. Inflation has a primary side effect: the increasing of prices. It has another side effect: malinvestments, which mean that investors see increasing prices in a market, so they put more money into that market, causing prices to skyrocket. This is how bubbles are created, usually put at the fault of the central bank that created all the new money. The third effect of inflation is the boom-and-bust economic cycle.

When most “normal” non-economist people talk of inflation, they mean one thing: the rise in prices. Fuel prices are up double in one year; housing prices skyrocketed 100% to even 300% in some markets in 4 years. People call that inflation, even though it is an effect of inflation, or the creation of new money.

Read the rest of this article titled Inflation figures are even worse than the free market economists think at the gold investment site.