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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (28749)	3/25/2005 11:15:25 AM
From: shades	Respond to of 306849

When I got in the business about 15 years ago..NO was a possible answer when you asked for a mortgage loan. NO....your credit stinks. NO....you have a poor (or no) job history. NO...you dont have a down payment. NO is not part of the equation anymore. The only answer is YES. It should be NO....but its YES...Its stinking insane! You haven't seen the capital one ads with david spade have you? You don't have to hear NO today - what's in your wallet?

To: John Vosilla who wrote (28749)	3/25/2005 11:24:13 AM
From: Mike da bear	Read Replies (3) \| Respond to of 306849

As far has "No..he WILL walk." I think the new bankruptcy bill will curb that substantially. Maybe congress (aka the CC and financial companies) forsees this problem coming??? No walking away and starting new, if you're upside down on equity you'll have to pay that back. The sheep are in the pen, the escape hatches are being welded shut... time for the slaughter.

To: John Vosilla who wrote (28749)	3/26/2005 3:48:10 PM
From: GraceZ	Read Replies (3) \| Respond to of 306849

How does a 5-10% drop in value of an asset in which you have little financial interest ruin you? That is, if what you say here is true, they may have zero money invested: Many, many, many, people have taken out 90-100% of the value Seems to me it is the banks which are set up to fall in that situation and those who have the most money invested in their house, not the least. Now the person who doesn't walk, the one who sells and satisfies the principle of the mortgage from savings can suffer real losses as I've illustrated earlier with my examples of my neighbors. Message 21138919 During that downturn where 50% of the houses in my neighborhod were underwater to some degree there were almost no foreclosures in the neighborhood of 150 houses or so. There weren't a lot of sales either. The great news for us was that our incomes rose so much during the period our house was priced below what we paid for it (ten years), that the mortgage payment shrank in significance as well as in real terms (we refinanced at a shorter term and lower rate). I never saved so much money in my life as I did when I was stuck in that house. Also, if housing inflation foreshadows an accelerating trend in inflation in the general price levels one can expect wages to inflate as well.