People are going to walk

[rb_engineer]

Actually, 417K limit has always been in place and jumbo loan is still available. It was that companies without any capital of their own was able to loan out money to non-qualified individuals. Past few months have shown that this is clear not a working business model and they are paying for it. However, I agree that this puts significant pressure on the demand side and combined with people’s psychology it can really lead us down. Time will tell…

[rb_engineer]

Actually, 417K limit has always been in place and jumbo loan is still available. It was that companies without any capital of their own was able to loan out money to non-qualified individuals. Past few months have shown that this is clear not a working business model and they are paying for it. However, I agree that this puts significant pressure on the demand side and combined with people’s psychology it can really lead us down. Time will tell…

[sdnativeson]

Vrudny – LOL! well, it is A perspective.

[sdnativeson]

Vrudny – LOL! well, it is A perspective.

[arnie]

Someone correct me if I am wrong but I believe that most (if not all) credit cards now carry a provision in the agreement which states that if the cardholder is late on any payment (other cards, mortgage, phone bill, cable bill) the the issuer has the right to increase the interest rate, rebill any interest free balance transfers and generally make life very difficult. If this is the case, it’s not going to do late paying borrowers much good to pay cards and not mortgage.

[arnie]

Someone correct me if I am wrong but I believe that most (if not all) credit cards now carry a provision in the agreement which states that if the cardholder is late on any payment (other cards, mortgage, phone bill, cable bill) the the issuer has the right to increase the interest rate, rebill any interest free balance transfers and generally make life very difficult. If this is the case, it’s not going to do late paying borrowers much good to pay cards and not mortgage.

[Ricechex]

Here, here Vrudney! My sentiments exactly. I have been wondering how to invest in a supply of water, so that I can be guaranteed fresh drinking water when all of these problems converge making us a third world country.

Has anyone seen the documentary, “End of Suburbia”?

Home

The beginning of the end of is NOW….as we can see housing prices in Temecula, Murietta, and outlying areas are the first ones to drop.

[Ricechex]

Here, here Vrudney! My sentiments exactly. I have been wondering how to invest in a supply of water, so that I can be guaranteed fresh drinking water when all of these problems converge making us a third world country.

Has anyone seen the documentary, “End of Suburbia”?

Home

The beginning of the end of is NOW….as we can see housing prices in Temecula, Murietta, and outlying areas are the first ones to drop.

[patientrenter]

vrudny, good moves! I remember getting irritated years and years ago whenever gas prices went up. Then I realized I could buy an oil stock and ‘hedge’ my gas bills. For over 10 years now, I haven’t cared one whit when gas prices go up or go down. Problem solved.

Your moves sound similar. You get irritated by certain self-damaging behaviors of the general US population, but then you set yourself up to make money off the predictable consequences. It’s a hedge, a “citizen of the world” approach. I am learning to do the same thing, but it takes an effort. E.g. I am kicking myself for not bothering to set up an account to buy yen futures months ago to hedge my stock portfolio, or taking personal advantage of my knowledge of interest rates and credit spreads and mortgage lender risk. Next time….

Enjoy those beers!

Patient renter in OC

[patientrenter]

vrudny, good moves! I remember getting irritated years and years ago whenever gas prices went up. Then I realized I could buy an oil stock and ‘hedge’ my gas bills. For over 10 years now, I haven’t cared one whit when gas prices go up or go down. Problem solved.

Your moves sound similar. You get irritated by certain self-damaging behaviors of the general US population, but then you set yourself up to make money off the predictable consequences. It’s a hedge, a “citizen of the world” approach. I am learning to do the same thing, but it takes an effort. E.g. I am kicking myself for not bothering to set up an account to buy yen futures months ago to hedge my stock portfolio, or taking personal advantage of my knowledge of interest rates and credit spreads and mortgage lender risk. Next time….

Enjoy those beers!

Patient renter in OC

[bsrsharma]

Quote from an ex-AHM employee:

—————————————
Shawn Nuzzo, 31, a loan sales coordinator, said he sensed a shift in the market late last year.

“Basically, the guy who puts no money down has a big incentive to walk away when interest rates go up,” Mr. Nuzzo said. “That started happening, and we made some adjustments. But obviously it was too little, too late.”
—————————————-

[bsrsharma]

Quote from an ex-AHM employee:

—————————————
Shawn Nuzzo, 31, a loan sales coordinator, said he sensed a shift in the market late last year.

“Basically, the guy who puts no money down has a big incentive to walk away when interest rates go up,” Mr. Nuzzo said. “That started happening, and we made some adjustments. But obviously it was too little, too late.”
—————————————-

[Author]

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