Bush speech on home ownership: flashback

[NotCranky]

DWCAP,
The situation is very bad in the 600k to 1M range too.The fudging on loans was profilgate throughout all housing values. Some of these homes, though by no means all, were purchased with higher down payments but still used the liar loan method of financing.There has been some equity to burn through.
We have already seen many realtors who were in nicer areas go up in smoke with their purchases. When other professions or investor types, face loss of income that most Realtors have already faced we will see more distress. Alternately maybe we will see less failures with the only difference being that people upside down in this range can hold out long enough to be recipients for “rescues” and any inflation scenarios, whereas the poorer have already succumbed. Some of them may be using up their inheritances, before their parents pass,to survive, which is an option many people in areas like Encanto, which imploded, don’t have.

It will be interesting to see how this unfolds.

[NotCranky]

DWCAP,
The situation is very bad in the 600k to 1M range too.The fudging on loans was profilgate throughout all housing values. Some of these homes, though by no means all, were purchased with higher down payments but still used the liar loan method of financing.There has been some equity to burn through.
We have already seen many realtors who were in nicer areas go up in smoke with their purchases. When other professions or investor types, face loss of income that most Realtors have already faced we will see more distress. Alternately maybe we will see less failures with the only difference being that people upside down in this range can hold out long enough to be recipients for “rescues” and any inflation scenarios, whereas the poorer have already succumbed. Some of them may be using up their inheritances, before their parents pass,to survive, which is an option many people in areas like Encanto, which imploded, don’t have.

It will be interesting to see how this unfolds.

[DWCAP]

Rus, I couldnt agree more. I just wanted to point out that the highest cost third of the market is not the one going down the fastest. Nor was it the one going up the most in %age terms. Therefore, I find it alittle off when someone states that all the gov programs, which mostly effect the other two catagories, had little effect.

[DWCAP]

Rus, I couldnt agree more. I just wanted to point out that the highest cost third of the market is not the one going down the fastest. Nor was it the one going up the most in %age terms. Therefore, I find it alittle off when someone states that all the gov programs, which mostly effect the other two catagories, had little effect.

[DWCAP]

Rus, I couldnt agree more. I just wanted to point out that the highest cost third of the market is not the one going down the fastest. Nor was it the one going up the most in %age terms. Therefore, I find it alittle off when someone states that all the gov programs, which mostly effect the other two catagories, had little effect.

[DWCAP]

Rus, I couldnt agree more. I just wanted to point out that the highest cost third of the market is not the one going down the fastest. Nor was it the one going up the most in %age terms. Therefore, I find it alittle off when someone states that all the gov programs, which mostly effect the other two catagories, had little effect.

[DWCAP]

Rus, I couldnt agree more. I just wanted to point out that the highest cost third of the market is not the one going down the fastest. Nor was it the one going up the most in %age terms. Therefore, I find it alittle off when someone states that all the gov programs, which mostly effect the other two catagories, had little effect.

[CA renter]

Those government programs (CRA) were the fuel which enabled the zero-down deadbeats to pay $500K for crapshacks in O’side.

The sellers of the houses in O’side (who bought during normal times) now had **hundreds of thousands** which they used for down payments on the next level up (say a 3/2 in Carlsbad)…and on up it went, right into the $1MM category. They could get $300K from their first home, use that plus a $600K no-doc, neg-am loan to buy a $900K house.

They haven’t been foreclosed on because plenty of them cashed out the $300K equity (from the down payment) and are using that to make the monthly payments.

The housing bubble was fed from the bottom up via all the “give poor people a mortgage they can’t afford” loans. The very bottom had NO equity (zero down), but the move-ups often had very large down payments which enables them to hold on longer. They have equity to strip and they can sell instead of foreclose…for now.

[CA renter]

Those government programs (CRA) were the fuel which enabled the zero-down deadbeats to pay $500K for crapshacks in O’side.

The sellers of the houses in O’side (who bought during normal times) now had **hundreds of thousands** which they used for down payments on the next level up (say a 3/2 in Carlsbad)…and on up it went, right into the $1MM category. They could get $300K from their first home, use that plus a $600K no-doc, neg-am loan to buy a $900K house.

They haven’t been foreclosed on because plenty of them cashed out the $300K equity (from the down payment) and are using that to make the monthly payments.

The housing bubble was fed from the bottom up via all the “give poor people a mortgage they can’t afford” loans. The very bottom had NO equity (zero down), but the move-ups often had very large down payments which enables them to hold on longer. They have equity to strip and they can sell instead of foreclose…for now.

[CA renter]

Those government programs (CRA) were the fuel which enabled the zero-down deadbeats to pay $500K for crapshacks in O’side.

The sellers of the houses in O’side (who bought during normal times) now had **hundreds of thousands** which they used for down payments on the next level up (say a 3/2 in Carlsbad)…and on up it went, right into the $1MM category. They could get $300K from their first home, use that plus a $600K no-doc, neg-am loan to buy a $900K house.

They haven’t been foreclosed on because plenty of them cashed out the $300K equity (from the down payment) and are using that to make the monthly payments.

The housing bubble was fed from the bottom up via all the “give poor people a mortgage they can’t afford” loans. The very bottom had NO equity (zero down), but the move-ups often had very large down payments which enables them to hold on longer. They have equity to strip and they can sell instead of foreclose…for now.

[CA renter]

Those government programs (CRA) were the fuel which enabled the zero-down deadbeats to pay $500K for crapshacks in O’side.

The sellers of the houses in O’side (who bought during normal times) now had **hundreds of thousands** which they used for down payments on the next level up (say a 3/2 in Carlsbad)…and on up it went, right into the $1MM category. They could get $300K from their first home, use that plus a $600K no-doc, neg-am loan to buy a $900K house.

They haven’t been foreclosed on because plenty of them cashed out the $300K equity (from the down payment) and are using that to make the monthly payments.

The housing bubble was fed from the bottom up via all the “give poor people a mortgage they can’t afford” loans. The very bottom had NO equity (zero down), but the move-ups often had very large down payments which enables them to hold on longer. They have equity to strip and they can sell instead of foreclose…for now.

[CA renter]

Those government programs (CRA) were the fuel which enabled the zero-down deadbeats to pay $500K for crapshacks in O’side.

The sellers of the houses in O’side (who bought during normal times) now had **hundreds of thousands** which they used for down payments on the next level up (say a 3/2 in Carlsbad)…and on up it went, right into the $1MM category. They could get $300K from their first home, use that plus a $600K no-doc, neg-am loan to buy a $900K house.

They haven’t been foreclosed on because plenty of them cashed out the $300K equity (from the down payment) and are using that to make the monthly payments.

The housing bubble was fed from the bottom up via all the “give poor people a mortgage they can’t afford” loans. The very bottom had NO equity (zero down), but the move-ups often had very large down payments which enables them to hold on longer. They have equity to strip and they can sell instead of foreclose…for now.

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