[HLS]

Most people have no idea how toxic these loans are.

Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.

The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.

Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.

They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.

Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.

[HLS]

Most people have no idea how toxic these loans are.

Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.

The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.

Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.

They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.

Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.

[HLS]

S-R
“skank” = fixer upper 😉

[HLS]

S-R
“skank” = fixer upper 😉

[HLS]

S-R
“skank” = fixer upper 😉

[HLS]

S-R
“skank” = fixer upper 😉

[HLS]

S-R
“skank” = fixer upper 😉

[HLS]

Asian,
You’ve stated well what so many ppl don’t seem to understand !!
This probably ISN’T going to follow a predictable path of any previous cycle.
(Past performance is no guarantee of future performance, blah blah blah)

The BILLIONS of dollars of write downs and BILLIONS of dollars of bailout/intervention is ALREADY unprecedented.

Many ppl who THINK that they are going to “scoop up bargains” can buy whatever they want if they have all cash, but most people have no clue about knowing whether or not they will actually QUALIFY for a non owner occupied loan, even if they have 25%-30% down.

There are plenty of people with money, and the rich will get richer, but Johnny Lunchbucket who spouts off about buying 2 or 3 rental properties if prices get really cheap may be talking out of his “posterior” and may be unable to qualify to buy ONE property, much less 3.

Any idea how many people feel like expert flippers JUST BECAUSE they have watched FLIP THIS HOUSE or Goofball Montelongo who has a few lawsuits chasing him.

Prayer is the only hope that some people have.

[HLS]

Asian,
You’ve stated well what so many ppl don’t seem to understand !!
This probably ISN’T going to follow a predictable path of any previous cycle.
(Past performance is no guarantee of future performance, blah blah blah)

The BILLIONS of dollars of write downs and BILLIONS of dollars of bailout/intervention is ALREADY unprecedented.

Many ppl who THINK that they are going to “scoop up bargains” can buy whatever they want if they have all cash, but most people have no clue about knowing whether or not they will actually QUALIFY for a non owner occupied loan, even if they have 25%-30% down.

There are plenty of people with money, and the rich will get richer, but Johnny Lunchbucket who spouts off about buying 2 or 3 rental properties if prices get really cheap may be talking out of his “posterior” and may be unable to qualify to buy ONE property, much less 3.

Any idea how many people feel like expert flippers JUST BECAUSE they have watched FLIP THIS HOUSE or Goofball Montelongo who has a few lawsuits chasing him.

Prayer is the only hope that some people have.

[HLS]

Asian,
You’ve stated well what so many ppl don’t seem to understand !!
This probably ISN’T going to follow a predictable path of any previous cycle.
(Past performance is no guarantee of future performance, blah blah blah)

The BILLIONS of dollars of write downs and BILLIONS of dollars of bailout/intervention is ALREADY unprecedented.

Many ppl who THINK that they are going to “scoop up bargains” can buy whatever they want if they have all cash, but most people have no clue about knowing whether or not they will actually QUALIFY for a non owner occupied loan, even if they have 25%-30% down.

There are plenty of people with money, and the rich will get richer, but Johnny Lunchbucket who spouts off about buying 2 or 3 rental properties if prices get really cheap may be talking out of his “posterior” and may be unable to qualify to buy ONE property, much less 3.

Any idea how many people feel like expert flippers JUST BECAUSE they have watched FLIP THIS HOUSE or Goofball Montelongo who has a few lawsuits chasing him.

Prayer is the only hope that some people have.

[HLS]

Asian,
You’ve stated well what so many ppl don’t seem to understand !!
This probably ISN’T going to follow a predictable path of any previous cycle.
(Past performance is no guarantee of future performance, blah blah blah)

The BILLIONS of dollars of write downs and BILLIONS of dollars of bailout/intervention is ALREADY unprecedented.

Many ppl who THINK that they are going to “scoop up bargains” can buy whatever they want if they have all cash, but most people have no clue about knowing whether or not they will actually QUALIFY for a non owner occupied loan, even if they have 25%-30% down.

There are plenty of people with money, and the rich will get richer, but Johnny Lunchbucket who spouts off about buying 2 or 3 rental properties if prices get really cheap may be talking out of his “posterior” and may be unable to qualify to buy ONE property, much less 3.

Any idea how many people feel like expert flippers JUST BECAUSE they have watched FLIP THIS HOUSE or Goofball Montelongo who has a few lawsuits chasing him.

Prayer is the only hope that some people have.

[HLS]

Asian,
You’ve stated well what so many ppl don’t seem to understand !!
This probably ISN’T going to follow a predictable path of any previous cycle.
(Past performance is no guarantee of future performance, blah blah blah)

The BILLIONS of dollars of write downs and BILLIONS of dollars of bailout/intervention is ALREADY unprecedented.

Many ppl who THINK that they are going to “scoop up bargains” can buy whatever they want if they have all cash, but most people have no clue about knowing whether or not they will actually QUALIFY for a non owner occupied loan, even if they have 25%-30% down.

There are plenty of people with money, and the rich will get richer, but Johnny Lunchbucket who spouts off about buying 2 or 3 rental properties if prices get really cheap may be talking out of his “posterior” and may be unable to qualify to buy ONE property, much less 3.

Any idea how many people feel like expert flippers JUST BECAUSE they have watched FLIP THIS HOUSE or Goofball Montelongo who has a few lawsuits chasing him.

Prayer is the only hope that some people have.

[HLS]

Aren’t you aware of all the pent up demand from “sellers” who are just waiting to get even ???

What’s the sense of listing today when over 90% of what is listed isn’t selling, and many people think that their neighbor’s house that remains unsold is too cheap anyway, theirs “must be” worth more.

MLS listings don’t tell the whole story in a declining market.

It’s a pain to list a house for sale. It’s easier to stay for free and get foreclosed on someday. Why bother trying to sell when you owe $200K more than it’s worth, unless you have to.

In many areas, every single home bought in 2004,2005,2006 and 2007 the “owner” has paid more than the house is worth today.

I wouldn’t pay much attention to falling inventory numbers.
It may turn out to be a foolish indicator.
The available pool of buyers has probably dropped over 50%,
who cares that MLS inventory has dropped 4% or 8%.

There is still plenty to choose from, unless you only want a certain color house on a certain street.
As far as shelter, there is no shortage of houses.

The comparison of inventory #’s is COMPLETELY different when everybody HAS equity and is holding off selling because they want more. Contraction of inventory in an up market is much different.

Just like there is no shortage of cars that provide transportation either, but if you only want a 1965 pink Cadillac, you may have a tough time finding exactly that, although there are thousands of other choices that provide the same result.

The simple need of shelter or transportation is very easy to meet. It’s only the location of the shelter that creates different issues (or the look of the vehicle)

[HLS]

Aren’t you aware of all the pent up demand from “sellers” who are just waiting to get even ???

What’s the sense of listing today when over 90% of what is listed isn’t selling, and many people think that their neighbor’s house that remains unsold is too cheap anyway, theirs “must be” worth more.

MLS listings don’t tell the whole story in a declining market.

It’s a pain to list a house for sale. It’s easier to stay for free and get foreclosed on someday. Why bother trying to sell when you owe $200K more than it’s worth, unless you have to.

In many areas, every single home bought in 2004,2005,2006 and 2007 the “owner” has paid more than the house is worth today.

I wouldn’t pay much attention to falling inventory numbers.
It may turn out to be a foolish indicator.
The available pool of buyers has probably dropped over 50%,
who cares that MLS inventory has dropped 4% or 8%.

There is still plenty to choose from, unless you only want a certain color house on a certain street.
As far as shelter, there is no shortage of houses.

The comparison of inventory #’s is COMPLETELY different when everybody HAS equity and is holding off selling because they want more. Contraction of inventory in an up market is much different.

Just like there is no shortage of cars that provide transportation either, but if you only want a 1965 pink Cadillac, you may have a tough time finding exactly that, although there are thousands of other choices that provide the same result.

The simple need of shelter or transportation is very easy to meet. It’s only the location of the shelter that creates different issues (or the look of the vehicle)

[HLS]

Aren’t you aware of all the pent up demand from “sellers” who are just waiting to get even ???

What’s the sense of listing today when over 90% of what is listed isn’t selling, and many people think that their neighbor’s house that remains unsold is too cheap anyway, theirs “must be” worth more.

MLS listings don’t tell the whole story in a declining market.

It’s a pain to list a house for sale. It’s easier to stay for free and get foreclosed on someday. Why bother trying to sell when you owe $200K more than it’s worth, unless you have to.

In many areas, every single home bought in 2004,2005,2006 and 2007 the “owner” has paid more than the house is worth today.

I wouldn’t pay much attention to falling inventory numbers.
It may turn out to be a foolish indicator.
The available pool of buyers has probably dropped over 50%,
who cares that MLS inventory has dropped 4% or 8%.

There is still plenty to choose from, unless you only want a certain color house on a certain street.
As far as shelter, there is no shortage of houses.

The comparison of inventory #’s is COMPLETELY different when everybody HAS equity and is holding off selling because they want more. Contraction of inventory in an up market is much different.

Just like there is no shortage of cars that provide transportation either, but if you only want a 1965 pink Cadillac, you may have a tough time finding exactly that, although there are thousands of other choices that provide the same result.

The simple need of shelter or transportation is very easy to meet. It’s only the location of the shelter that creates different issues (or the look of the vehicle)

[Author]

Posts