Constitutional Financial Innovation – Bankruptcy is a put option – interesting idea. – Rortybomb – … I honestly don’t see a net difference between a household declaring bankruptcy and a household collecting money on a put options it has written on itself. You are being charged for credit risk by the people who lend to you; you are already paying the fee for having this put option. … – Rortybomb Blog

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A Look Ahead To the Great Resetting – By Dina ElBoghdady – … About 10 percent of all mortgages in this country are scheduled to adjust in the next few years, with the numbers peaking in mid- to late 2011, according to First American CoreLogic. Those loans are worth about $1 trillion, and nearly 20 percent of the borrowers who have them are already seriously behind on their monthly payments.  Many of these loans will lapse into foreclosure and disappear before they adjust, said Sam Khater, senior economist at First American CoreLogic. Others will terminate for less dramatic reasons as people sell their homes, refinance or have their mortgages modified.  “I suspect that at least a third of these [adjustable loans] won’t be around by the time they are scheduled to reset,” Khater said. … – Washington Post

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US apartment vacancy rate hits 23-year high-report - By Ilaina Jonas – … national vacancy rate hit a 23-year high despite being propped up by landlords willing to take lower rent to keep tenants, according to real estate research firm Reis Inc.  The U.S. apartment vacancy rate rose to 7.8 percent in the third quarter, its highest since 1986, … – Reuters 
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Bill Raises Required Down Payment to 5% for FHA Loans -  By AUSTIN KILGORE – … The bill’s author, Rep. Scott Garrett (R-NJ), said the current policy of allowing closing costs to be rolled into the mortgage effectively reduces FHA down payments to as low as 2.5% because borrowers don’t have to have as much cash on hand at closing. … – HousingWire 
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Shovel Ready? – Residents Get Chance At Stimulus Money – Stimulus Money Available For Low-Income, Homeless Detroit Residents – … Thousands of people lined up Tuesday.  Some people in line falsely believed they were registering for $3,000 stimulus checks from the Obama Administration. ... – Click On Detroit