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

To: Les H who wrote (288010)	10/31/2010 6:37:54 PM
From: Valuepro	Read Replies (1) \| Respond to of 306849

"And the real estate brokers are supposed to pre qualify buyers, and the mortgage brokers are supposed to qualify borrowers, and borrowers are supposed to have enough sense to know when too much debt is too much. It ain't just the banks at fault." Les H - "Two of the three have financial incentives while they pass on the risk to a other parties." Come, now! Rising prices can drive demand and cause borrowers to take on more risk than they would otherwise. Consequently, there are financial incentives for borrowers. And is not risk transfered in so many cases when buyers have so little equity anyway? Man, rising prices is what causes hysteria like we just went through. Without wildly rising prices, there would have been many fewer borrowers compared to historical norms. And, that can be seen in reverse in the markets now - there would be more buying, save for falling prices. Yes, unemployment plays a role, so as we get people back to work, home sales will improve and as price rise there will be more incentive to buy.

To: Les H who wrote (288010)	11/1/2010 12:47:23 AM
From: Broken_Clock	Respond to of 306849

Funny how VP keeps ignoring the fraud confessions of the mortgage brokers. How they deliberately forged buyer signatures on federally mandated good faith estimates....I guess ignoring the fact that many, if not the majority of buyers never even knew what they were doing, being told one thing and signing for another (again, self confessed by the mortgage brokers) - "bait and switch" lenders. Like i said, my really honest escrow officer would not go through the closing loan docs without the mortgage broker being there to explain to the buyer. She lost a crap load of business. VP admits his wife just kept her mouth closed. Different strokes for different folks.