Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Micawber who wrote (15246)	11/25/2003 7:34:27 AM
From: Elroy Jetson	Respond to of 306849

The fact that almost all of the largest builders are now selling homes with no money down is a "ringing bell" to me. Even the Closing Costs of a new home are now included in the mortgage along with the non-existent down-payment. What's predictable, based on previous experience, is that these loans are typically held by the financing subsidiary of the home builder rather than being sold off to a bag-holder bank or Fannie Mae. So while technically these homes are sold, on a realistic basis they aren't. So I don't see where they have actually learned much from experience. Of course this is why almost all large home-builders went out of business or bankrupt during the 1990 down-turn.