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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 (35366)	7/14/2005 11:14:29 PM
From: bentway	Read Replies (1) \| Respond to of 306849

Sounds like the first wave of the screwed! Still, how sympathetic can you be for someone who buys 19 houses they really can't afford thinking they're going to get rich on the appreciation? Sounds like a case of the greedy being exploited by the unscrupulous. Didn't Elroy once work for Pulte?

To: John Vosilla who wrote (35366)	7/15/2005 12:11:58 AM
From: CalculatedRisk	Respond to of 306849

Housing is hot, but types of loans seen cooling news.yahoo.com "No other product can compete with the low monthly payment of an option ARM," Bear Stearns said. Even interest-only loan products fall short of option ARMs, the firm said. For example, with the assumption of a standard 1.5 percent teaser rate offered on most option ARMs the break-even interest-only rate would be 4.14 percent, well below any hybrid or fixed mortgage rate currently offered. Bear Stearns' conclusion: it is the end of the road in the mortgage affordability cycle.