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

To: Amelia Carhartt who wrote (122225)	5/11/2008 11:50:13 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

The problem is they are gonna drag you right down with them. Their gluttony has already cost you at the pump.

To: Amelia Carhartt who wrote (122225)	5/11/2008 5:16:59 PM
From: RockyBalboa	Read Replies (3) \| Respond to of 306849

Please consider the following: much like in stock market boiler room activity of the 90s people with little education have been conned into loan contracts which they did not understand and which have not been presented in full. The most intriguing form took the NegAm, IO, or Option Arm loan where people have made believe that they can easily refi out before the regular rate with full points will bite them. But: Many of us say today, those loans have been designed for failure and in that regard lots of legal prosecution is taking place. What would you say to a zero down 1.75% 5.5points negam which is acreeting with a rate of 9% a year. Impossible even in a stagnant to mildly bullish market. Combine that with a 120% recast clause and thats the recipe for a DOA (Death on Approval) loan. I concede that there is a fine line between originator fraud and borrower fraud. There may be many borrowers who must have known or knew that they dont make it or they default if they dont flip the property in like 30 days. The number of first payment defaults indicates borrower fraud. Those guys don´t deserve any help they were insane while others were hapless. I am the last one who would agree to aiding moral hazards by wasting taxpayers money. But it is hard to understand that those responsible for the mess go unscathed; they are the experts and should take on more responsibility.