5% mortgage rates and Baja blues

Goodnight, Jimmy Clausen.  Various headlines, insights and stuff worth reading from here and there:

--Lou Barnes sees serious economic trouble coming, says the Fed's statements lately reveal it to be "incompetent," but also sees a major silver lining: Things are so bad he expects repeat rate-cutting by the Fed, which will mean lower mortgage rates soon: "It is reasonable to expect fixed mortgages in the fives shortly, a boost to buyers and an escape for those who need a refinance escape."

--Economist and comedian Ben Stein bloviates in the New York Times about the sub-prime crisis and notes the dishonesty of many borrowers: "What is often overlooked is that many borrowers, people who look at themselves in the mirror every morning, lied like madmen to get their mortgages."

--Overlooked (by us) in yesterday's Countrywide news, the L.A. Times goes to Baja California and finds a bursting bubble in the condo market that is burning numerous American investors. "Upward of 40% of the condos in some northern Baja projects were purchased by flippers who intended to resell them even before construction was finished." I can't imagine those flippers will find much sympathy on this blog. (Is there a blog where flippers in trouble commiserate?)

--The L.A. Times also warns of foreclosure rescue scams, which are on the rise.

Thoughts? Comments? Insights?

Comments

[Lupe]

Dear Trump Baja Buyers:

For those interested, below is the contact information for an attorney representing 60+ buyers in a Class Action Suit.

Daniel J. King
Law Offices of Daniel J. King
The Trillium Building
6320 Canoga Avenue, Suite 675
Woodland Hills, California 91367
818-587-9299
Worldwide Fax Toll Free 866-260-2160
Alternate Fax 818- 587-9292

[kautzen]

I bought a solar home at El Dorado Ranch for $43.500.00, paid cash, and I have been enjoying it for close to two years. It took forever to get my final paperwork thru the Mexican government, but all finally got done. The Ranch is hurting just like any other builder/developer in any country. Right now I would not suggest anyone buy anywhere in Mexico. Time will tell, but I am consertive. There are some very good deals down there if you know what you are getting into. I truly love. I pay my taxes directly on line and get the money paid in pesos thru my bank. It is a good way as you know they have been paid. I have herd that some of the people who paid the Ranch their taxes did not get the money paid to the Mexican Govt. So, even though I love it, buyer beware. Get facts first, rent for awhile, know your community.... Love it first, then decide.
Good luck.