The foreclosure crisis that we are currently witnessing is one of the greatest economic tragedies that we have seen in America in modern times. Millions of people are getting kicked out of their homes, and the U.S. government and mortgage lenders are providing little to no real help. It is a real shame to see so many American families get dumped out on to the street because of the greed of a few. And unfortunately, foreclosures in the United States continue to set new records. The number of foreclosures set another all-time record for the second consecutive month in May. In addition, the number of newly initiated foreclosures rose 18.6 percent to 370,856 during the first quarter of 2010. What that means is that the foreclosure crisis is getting even worse. Tens of millions of Americans desperately need foreclosure help, but pretty much nobody seems interested in helping them. Foreclosure horror stories are multiplying as large numbers of American families are struggling to pay mortgages that they didn't understand and couldn't afford in the first place. Unless someone steps forward to help the tens of millions of Americans that are in danger of foreclosure, the tragedy is going to end up being unspeakable. (Read More.....)
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If you haven't heard, the government is offering a 8,000 dollar tax credit to first time home buyers. Many tax payers wonder how the government affords to give away additional money, while others see the gvt acting in desperation of boosting the economy in a creative way. There is nothing new or creative about producing money out of thin air and giving it away, as it is something the government has been doing for years. Though, many buyers are frantically looking to find a home before the due date so they can take advantage of the one and "only" deal of their lives. It is an excellent strategy used to bate and fish property virgins who come to the real estate table with no foreclosure and bankruptcy stains on their credit. 
The common rule amongst lenders is for a buyer to consider a potential home that runs about two-and-one-half times their annual salary. Lenders like to see 20 percent of the home's price as a down payment. With a down payment under 20 percent, a buyer may wind up paying private mortgage insurance, which is a safety net for the bank in case you fail to make payments. Mortgage insurance can cost approximately 0.5% to 1% of the loan value, up to $3,500 per year on a $350,000 home, or $5,000 on a $500,000 home. It is money paid out over top of your mortgage payment that does not count toward your principal or interest.