The subprime lenders are now just (1) regrouping to prepare for big losses and are no longer writing subprime loans (2) going out of business (3) being monitored by the FDIC, SEC, etc., etc. It takes a bit of time to stop a runaway train. But it will happen, it will stop.
I just sold my home in January (and thankfully for this site – thank you Lord) decided to rent. Quite frankly I’m loving it. No resonsibilities! Anyway, I do plan to buy again, but not just yet. But my home was purchased by someone who got 100% financing. The buyer just barely squeeked by. It was really touch-n-go as the lender put on some credit conditions on the day the escrow was to close. Finally the lender just let the loan fund. It was really close. Go figure why some Lenders are still giving their money away like that to people who are likely to default. That pot will indeed dry up entirely.
If you have the home you love, enjoy. Plant a garden, paint the rooms the colors that make you happy! Personalize it to you. That’s one of the best things about owning as opposed to renting. I actually miss trips to Home Depot. Go figure.
