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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 (80047)	6/25/2007 10:37:53 AM
From: Smiling Bob	Read Replies (2) \| Respond to of 306849

Absolutely. Rather than get a mortgage that fit your income, you simply stated your income to fit the mortgage desired to buy the home/loan of your dreams. It's long known that the Americans are notorious for undersaving, overspending, overindulging and overborrowing. The yet to be known monkey is how many jumped at the chance to cash in on the big gubbament gibaway. Probably much, much higher than the mkt reflects. DOW up 70!!!!!

To: John Vosilla who wrote (80047)	6/25/2007 10:54:11 AM
From: BWAC	Read Replies (1) \| Respond to of 306849

"'Barrington consists of 107 starter homes built by Beazer Homes USA off Sunset Road West in northwest Charlotte. Most were priced from the $90,000s to $130,000s.' Problems in these markets means armageddon in many of the coastal bubble markets not being bailed out anymore by appreciation when you are talking a similar group of people with loans 3-5 times the size of those in this Charlotte community yet incomes not significantly higher and the same poor credit histories.." John, Stockonstocks This is old news. Beazer has been in hot water over this for almost 3 months or more. Sunset Road is infill basically. Its an older industrial area, skipped over when Charlotte expanded outward towards the towns of Huntersville, Davidson, etc. (Up I-77 toward the Lake). Sunset Rd was not and should not have been a desirable area to live, even given the housing bubble. These houses were sold to people making minimum wage basically. Single parents. Very young hourly wage workers. Houses were built like crap. To quote one of the inspectors "4 year old house looks like its 20 years old". The houses were bought because the "dream" was cheap and affordable. Now it just looks run down and sloppily maintained. Sunset Rd is also on the fringe of being in the hood. And has always been in/near a crime infested area. ------------------------------------ Don't read anything into Barrignton other than Beazer sold a "dream" to unwary and naive first time buyers, who already were barely making ends meet before the house purchase. I'll go on record as saying 85% of these homes will be either foreclosed or eventually sold at a 20% discount to purchase price. The new buyers of these homes will be investors who will rent them out. Investors who maintain large numbers of rental units. As in slumlords.