What Has Caused All The Forclosures?

I received a foreclosure question from my site fha-mortgageunderwriters.com, and ... I really don't know if it was from a consumer or a loan professional. Most of the questions I get are from people in the industry.

The woman wanted to know what I think has really caused all the home foreclosures in our real estate market today. You know, that is not a simple question to answer, and I am usually pretty up to date on the market and the politics involved.

So, not wanting to offend I sent off a short list of the things that contributed to our housing crises:

• Politics, and politicians using the market to further their agenda. They have made it look much worse than it is and that media B.S. should clear after the election. Please understand, it is not good, but the market is not nearly as bad as they are blasting out to the consumers.
• The normal real estate cycle
• Depreciation of value which was sort of caused by mortgage backed securities which are tied to Allen Greenspan's over exuberance.
• "Interest Only" programs
• Teaser Rate Adjustments
• Over speculation by investors
• Job loss, divorce, and over extended borrowers

There are more reasons I could add to the list and please note that these are not in any kind of priority order. I know people will say I forgot to include fraud. I did not forget it. Fraud played the least amount of cause and is only significant to the point that it is the primary place where people want to point the finger of blame because is not politically challenging or threatening.

I started wondering about the politics and the bail outs and the federal reserve so I did some research for my own peace of mind. I was Googling everything.

I ran across this video on Google. It starts out talking about income tax but then it gets into the federal reserve and it's history and position in politics today. It is a long video but I was spell bound and watched the entire thing.

I am neither Democrat nor Republican so my putting it on this blog has no political intentions. In fact, I am still researching some of the stuff in the video. It did open my mind and I have many more questions now.

Your welcome to leave comments but I'll tell you right now I am still not sure how I feel about it.

Food for thought I guess. Enjoy.

If the video is not loading here for you, go to: http://video.google.com/videosearch?q=freedom+to+facism&hl=en&sitesearch=#

Or, search google videos for: America: freedom to fascism - directors authorized version

The one you want to view is 111 minutes long.