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

To: Les H who wrote (49437)	3/3/2006 10:50:43 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<The zero-down interest-only loans are a stake on the future appreciation of the house above the current market value. There is no equity contribution on the part of the buyer.>> Well said, Les......We can only hope that this home-buying style is going out of style, or will soon due to heavier regulation of the lending process or some common-sense on the part of buyers.

To: Les H who wrote (49437)	3/4/2006 10:18:22 PM
From: Think4Yourself	Read Replies (3) \| Respond to of 306849

re: "There is no equity contribution on the part of the buyer." That scares me about many of the "investors" using "creative" financing. Do they think they can walk away if things go sour? My neighbor's kid did and she's in a world of financial hurt now. The new bankruptcy law says most people can no longer walk away without paying the difference between the house auction proceeds (less court, sherrif, bank, and auctioneer fees) and what they owe. Notice that I am saying the AUCTION price and NOT what the house is worth. The auction price is likely to be below what the home is worth. Housing prices are starting to fall all over the country and in a few months people are going to start realizing we have indeed started the down cycle (as if there could be any doubt!!). It is going to be extraordinarily interesting to see what these people do when they come out of their greed induced stupor and encounter the reality based fear that awaits them. Best job to have right now: Sign printer Most popular sign: For Sale by Owner Anyone who is looking at MLS numbers and NAR reports isn't getting the whole story. House prices are so high and commissions are so ugly that many home owners are trying to FSBO right now. Their houses aren't reflected in the MLS or NAR data. FSBO is going nuts by me right now, and probably comprises over half of the for sale signs I see.