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

To: Think4Yourself who wrote (83041)	8/3/2007 8:31:27 AM
From: BWAC	Read Replies (1) \| Respond to of 306849

<Other than the non-bank mortgage companies, which will soon be bankrupt, the builders are the only absolute losers in all of this.> No they will restructure and recapitalize and go right on in some form. The loser is, yet again, the middle class working family with 2 kids trying to buy, or sell, or stay in, or move up into a midpriced 4 BR, 3 bath home in a desirable neighborhood. All the wile juggling the ever looming potential of losing their job to outsourcing.

To: Think4Yourself who wrote (83041)	8/3/2007 8:32:14 AM
From: Tradelite	Respond to of 306849

Doubt that Fan and Fred will "buy the crap". What they'll do and are saying they will do is provide money for mortgage loans. Problem is, the loans will have to meet Fan/Fred "conforming loan" standards, which generally means a low-to-midpriced home in many parts of the country. These institutions don't deal in mega-loans with zero down, which the crowd of hedge funds and other risk-tolerant investors were lapping up in the past. Those in the biggest hurt, besides builders, will be the owners of high-priced homes in already-slow markets, who won't find as many buyers qualifying for huge loans. Not that buyers still can't get those nonconforming loans from good, large mortgage bankers; they'll just have to pay more for them. My opinion only.