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


To: Think4Yourself who wrote (110862)3/17/2008 10:05:19 AM
From: HawkmoonRespond to of 306849
 
Are you interested in buying bonds where the payments are at risk and the fundamentals behind the bond are deteriorating by the day?

Payments are less at risk if borrowers have a reasonable expectation that they are building up equity over the course of 30 years. Again.. if they don't own the property, some investor will purchase it and then rent it out, converting it from personal home-ownership to a landlord/renter situation. And the value of the property will then be determined by the price that renters are willing to pay to live there (because the landlord is not likely to rent it out for less than his monthly loan payments).

Hawk