I don’t get it. Which Piggington would lend their own (unborrowed) cash to an unrelated third party to finance 90% of a home’s purchase price today, if they got just 3-4% per year over the yield on zero-risk Treasuries? Most people on this blog believe home prices will decrease by well over 10% within the next 1-3 years. Most people on this blog believe homeowners, with good or bad credit, who become underwater on their homes by a large $ amount will walk away.
Are we all stupid? Or are the investors still lending at 10% down all stupid? It’s one or the other. Even 20% down seems borderline crazy today, outside of Temecula and other places where prices have already dropped by 40% or more.
