amricons

Subprime Revelation: Early Payment Default-ers Just Don't Care

Right on, anyone who has dealt in RE has done it, I remember the last cycle we would put down 2K on a brand new home not yet built and by the time it was completed, it would be worth $ 5- 10 K more. Is there anything wrong with that ? Basic capitalism 101 it seems to me. I helped a friend get out of a house in Manteca CA last spring he had no right to be in, and he made a ton of money. A 4 Bed 3200 sq ft house, and he was single. I know buyers that had 4-5 houses using different family members to buy them. And of course you have heard of the brnad new, empty grass crop growing houses, opps, nobody will be making those payments, they are in jail. Ever wonder how a buyer with a rap sheet can get a loan ? We have always had these kinds of buyers around. ( No down payment) This time the stakes are a bit higher thats all, instead of $160 K houses from past times they are now $400 K homes. Heck, the house next door to us, which we tried to buy, was financed 110%, and the woman we talked to that was in title, had no clue, she was a shill for some mystery owners. The people that lived in the house tols us they kept getting mail for some unknown party. Anyway, as long as the lenders kept giving away money, there were plenty of takers. It would not be surprising that a lot of the buyers of those 100% financed homes did not have a clue as there were a lot of groups out there filling out paperwork for them.