Financial Expert James DiGeorgia Warns Against Congressional Help for Defaulting Homeowners
Financial expert James DiGeorgia says Congressional action to help defaulting homeowners a "recipe for disaster."
Boca Raton, FL (PRWEB) October 15, 2007 -- Prominent investment editor and financial expert James DiGeorgia (www.goldandenergyadvisor.com) is warning against Congressional bills that would allow defaulting homeowners to keep their homes, calling it a "recipe for disaster" that will lead to further erosion in the real estate market.
"For the most part, mortgages are private contracts between a borrower and a lender," said James DiGeorgia, editor and publisher of the Gold and Energy Advisor. "If the government steps in and tries to invalidate foreclosure provisions, it will affect thousands of existing loans."
DiGeorgia points out that governmental interference in pre-negotiated private agreements would set very dangerous precedents in all areas of civil law.
"The mortgage market would seize up hard," he said. "What investor in his right mind would buy loans any more. Foreclosure, or the threat of it, is the only thing that keeps default rates low on mortgages. If the government takes away that option, default rates would skyrocket."
In essence, mortgages would become unsecured debt, according to DiGeorgia, and investors would demand unsecured debt rates.
"Imagine paying credit-card interest rates on a home mortgage," he said. "That's what would happen if the government interferes too much in the housing market."
ABOUT GOLD AND ENERGY ADVISOR:
The Gold and Energy Advisor is a monthly newsletter that covers the precious metals, and energy markets with the single goal of delivering money making recommendations to its subscribers. Gold and Energy Advisor is edited by James DiGeorgia, who has extensive experience in precious metals and the energy markets, and is considered one of the world's foremost authorities in both, having been frequently quoted in The New York Times, USA Today, Los Angeles Times, Money magazine, The Chicago Tribune, and Barron's. DiGeorgia is the author of the popular books The Global War for Oil and New Bull Market in Gold. For more information, visit GEA online at www.goldandenergyadvisor.com.
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