Sub-Prime Mortgage “Implode” barely makes a blip in Alaska

Finally, the "standard media" has admitted that Alaska's market isn't having quite the problems as the rest of the country.  As reported in the Juneau Empire, Anchorage Daily News, and other more conventional news sources, Alaska's relatively insulated from this "outside" problem.

The mortgage brokers pimping these loans just didn't get this far before their practice of offering high risk loans to the consumers.  Therefore, Alaska isn't having quite the catastrophic number of foreclosures found in other areas.

This isn't to say that we don't have a problem, but hopefully it will prove to be less of one that the heartbreaking stories I've been reading lately!   Sure, we have those people who refinanced one too many times, for medical expenses, divorce or credit card debt.  Some just used their home as an unlimited ATM machine and finally received the statement.  A few were seduced by late night television commercials and truly believed they could get a better deal than what our local lenders could offer.

Fact is, none of these loans were really easy to get in Alaska.  Out of state underwriters had a really tough time understanding our market, our geography, and our neighborhoods, and the fact that comparable sales were rarely within a mile of the subject.  I'm sure a few of them didn't even know that Alaska was part of the United States!  I'm not joking there - you'd be surprised how many corporations and even government employees think Alaska's another country!

Another part of our saving grace was also Alaska Housing Finance Corporation.  Forming AHFC was probably the smartest thing our state did when big oil money started pouring into government coffers.    Since 1986, AHFC has contributed 1.5 BILLION back to the State of Alaska and is probably the number one reason we still don't have a state income tax!  When you think about it that way, it would be un-Alaskan NOT to have an AHFC loan.

I think I'll save an in depth explanation of how AHFC works for another blog, but for tonight I am just thankful they were there to protect the interest of our citizens.