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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (392684)	6/19/2008 6:54:58 PM
From: tejek	Read Replies (1) \| Respond to of 1577404

10% fall in price over next 12 months yields 30% of homes underwater and that my friend will double foreclosures next year over this. Why? Foreclosures are increasing because of the mort. resets not because houses are underwater. Housing values dropping from one year to the next is nothing new....it happens all the time. What's different this time is that in the last two years of the boom all the important rules governing mort. lending were ignored. People who shouldn't have gotten houses were given loans that reset after a year to two. Those resets started last year and now are passing through the system. Its expected they will be done in the Fall and then foreclosures will slow down. You are impervious to even the most simple of facts that fly in the face of your student teaching ideology. If double foreclosures don't get your blood flowing, nothing will. From now on you are to be known on this thread as Brain Dead Ted (BDT). Uh.......I wouldn't mind being insulted if you knew what your were talking about but you don't.

To: michael97123 who wrote (392684)	6/19/2008 10:52:55 PM
From: combjelly	Respond to of 1577404

"10% fall in price over next 12 months yields 30% of homes underwater and that my friend will double foreclosures next year over this." Well, with any luck it won't get as bad as it got here. I know of people who bought several houses with their credit card. And their credit limit wasn't all that high... 10% is nothing. Think 80% or 90%. That punches huge holes in the real estate market. But, OTOH, at that time it was illegal to have an equity loan here. So that could make a difference.