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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (79438)	9/11/2011 8:11:41 AM
From: Ilaine	Read Replies (1) \| Respond to of 217764

>>absurdly high prices for houses using borrowed money that they should have been able to see they couldn't repay. Yes, but the biggest problem is actually toxic mortgages, interest only, exploding ARMS, negative amortization. If you buy a house you cannot afford but they let you pay for it using an interest only loan -- that's bad craziness. If the loan is negative amortization, as well, so that you owe more principal every month that you pay interest only -- that's insane craziness. If the interest rate isn't fixed and resets -- that's beyond insane, it's toxic. My clients look me in the eye and ask me, "why would I have done that?" Good question.