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

To: GraceZ who wrote (88470)	9/7/2007 6:57:19 PM
From: kathtoo	Read Replies (1) \| Respond to of 306849

Well the guy on CNBC said it, and CNBC, market cheerleaders that they are, doesn't usually over state the negative. FNMA won't help the guy up my street trying to sell his crappy house for $600,000. It would rent for about $1,200 or $1,300 at most. Which mortgage lender wants that loan? Which buyer is going to feel comfortable buying that home with declining values? Who is out there that can truly afford it? I suspect even subprime borrowers (if there are any) have to show income. No more buying on HPA (house price appreciation). This scenario is playing out all over the country in many markets. That is why we are at the beginning of this mess. The same pressures that forced the market up will drive it down. The way up was all flippers, greedy lenders, subprime loans to unqualified buyers, The elevator down will be strapped homeowners, fearful lenders, no flippers, and "why buy a house today when you can buy it cheaper tomorrow?" non existent buyers.

To: GraceZ who wrote (88470)	9/7/2007 7:07:34 PM
From: kathtoo	Read Replies (1) \| Respond to of 306849

Wanted to add, that I agree with you that what is being corrected is bad paper and bad credit risks. Translation "I'm not financing a half a million dollars for a crappy *%#@-box" The guy on CNBC did say that there were buyers for the paper at severely discounted prices. Aren't they really marking down the price of real estate when they do that. After all, their thought probably runs something like; "if this foreclosure ball keeps rolling down hill, gaining speed and size, the likelihood of defaults is even higher." Grace, You're kind of making my case for me. Kath