[orthofrancis]

Do builders pay taxes on the land and homes that they own, until they are sold? Or is there some sort of tax break to help them “develop”.

[orthofrancis]

It can be – just like a new fur coat.
Conservatism is brain damage.

[orthofrancis]

It can be – just like a new fur coat.
Conservatism is brain damage.

[orthofrancis]

It can be – just like a new fur coat.
Conservatism is brain damage.

[orthofrancis]

It can be – just like a new fur coat.
Conservatism is brain damage.

[orthofrancis]

It can be – just like a new fur coat.
Conservatism is brain damage.

[orthofrancis]

These loans are doing horribly – something like 90%!!(yes – I was shocked to see that) of the loans are only having minimum payments made, thus acquiring negative amortization. These loans are then expected to default EARLIER than the CreditSuisse table above.

So – no capital investment in a house = smarter to walk away. The former “owners” were really only renting the house, and they have no equity in it. This is going to be really bad here in California, where 50% of the jumbo loans are made.

I expect future bank behavior will require a minimum 20-30% down for future loans, to prevent such behavior happening again. An investment will tie the owner into the house (I worked hard for it – I don’t want to lose it), making them them much less likely to walk away.

[orthofrancis]

These loans are doing horribly – something like 90%!!(yes – I was shocked to see that) of the loans are only having minimum payments made, thus acquiring negative amortization. These loans are then expected to default EARLIER than the CreditSuisse table above.

So – no capital investment in a house = smarter to walk away. The former “owners” were really only renting the house, and they have no equity in it. This is going to be really bad here in California, where 50% of the jumbo loans are made.

I expect future bank behavior will require a minimum 20-30% down for future loans, to prevent such behavior happening again. An investment will tie the owner into the house (I worked hard for it – I don’t want to lose it), making them them much less likely to walk away.

[orthofrancis]

These loans are doing horribly – something like 90%!!(yes – I was shocked to see that) of the loans are only having minimum payments made, thus acquiring negative amortization. These loans are then expected to default EARLIER than the CreditSuisse table above.

So – no capital investment in a house = smarter to walk away. The former “owners” were really only renting the house, and they have no equity in it. This is going to be really bad here in California, where 50% of the jumbo loans are made.

I expect future bank behavior will require a minimum 20-30% down for future loans, to prevent such behavior happening again. An investment will tie the owner into the house (I worked hard for it – I don’t want to lose it), making them them much less likely to walk away.

[orthofrancis]

These loans are doing horribly – something like 90%!!(yes – I was shocked to see that) of the loans are only having minimum payments made, thus acquiring negative amortization. These loans are then expected to default EARLIER than the CreditSuisse table above.

So – no capital investment in a house = smarter to walk away. The former “owners” were really only renting the house, and they have no equity in it. This is going to be really bad here in California, where 50% of the jumbo loans are made.

I expect future bank behavior will require a minimum 20-30% down for future loans, to prevent such behavior happening again. An investment will tie the owner into the house (I worked hard for it – I don’t want to lose it), making them them much less likely to walk away.

[orthofrancis]

These loans are doing horribly – something like 90%!!(yes – I was shocked to see that) of the loans are only having minimum payments made, thus acquiring negative amortization. These loans are then expected to default EARLIER than the CreditSuisse table above.

So – no capital investment in a house = smarter to walk away. The former “owners” were really only renting the house, and they have no equity in it. This is going to be really bad here in California, where 50% of the jumbo loans are made.

I expect future bank behavior will require a minimum 20-30% down for future loans, to prevent such behavior happening again. An investment will tie the owner into the house (I worked hard for it – I don’t want to lose it), making them them much less likely to walk away.

[orthofrancis]

In 2002 the Down was averaging around 8500 – not quite half of this years 14,000. so they are roughly keeping on par with each other.

[orthofrancis]

In 2002 the Down was averaging around 8500 – not quite half of this years 14,000. so they are roughly keeping on par with each other.

[orthofrancis]

In 2002 the Down was averaging around 8500 – not quite half of this years 14,000. so they are roughly keeping on par with each other.

[orthofrancis]

I imagine they are setting fires to get insurance money from houses that haven’t sold.

But seriously, the cost of building new houses should be cheaper now, because demand is down. Fewer houses being built = cheaper labor, cheaper supplies, etc. Good for us.

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