The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Les H who wrote (288010)	10/31/2010 6:37:54 PM
From: Valuepro	Read Replies (1) of 306849

"And the real estate brokers are supposed to pre qualify buyers, and the mortgage brokers are supposed to qualify borrowers, and borrowers are supposed to have enough sense to know when too much debt is too much. It ain't just the banks at fault." Les H - "Two of the three have financial incentives while they pass on the risk to a other parties." Come, now! Rising prices can drive demand and cause borrowers to take on more risk than they would otherwise. Consequently, there are financial incentives for borrowers. And is not risk transfered in so many cases when buyers have so little equity anyway? Man, rising prices is what causes hysteria like we just went through. Without wildly rising prices, there would have been many fewer borrowers compared to historical norms. And, that can be seen in reverse in the markets now - there would be more buying, save for falling prices. Yes, unemployment plays a role, so as we get people back to work, home sales will improve and as price rise there will be more incentive to buy.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next