Broke people are buying million dollar houses again.

peilthetraveler · Nov 20, 2009

http://www.nytimes.com/2009/11/20/business/20limits.html?em

A couple of almost broke guys pooled their cash together to come up with a 3.5% down payment and bought a house for nearly a million dollars.

"It was kind of crazy we could get this big a loan,â said Mr. Rowland, 27. âIf a government official came out here, I would slap him a high-five.â

Do you guys really see a recovery in sight with this kind of stuff happening?

Scataphagos · Nov 20, 2009

Quote from peilthetraveler:

http://www.nytimes.com/2009/11/20/business/20limits.html?em

A couple of almost broke guys pooled their cash together to come up with a 3.5% down payment and bought a house for nearly a million dollars.

"It was kind of crazy we could get this big a loan,â said Mr. Rowland, 27. âIf a government official came out here, I would slap him a high-five.â

Do you guys really see a recovery in sight with this kind of stuff happening?

Government is desperate to get loan volume "going" again, but banks want to lend only to qualified borrowers...

pspr · Nov 20, 2009

I read that the USDA is even making home loans now to rural areas or suburb towns of less than 20,000 residents. We're looking to buy a home in Texas but didn't fit into the income threshold for the USDA.

I think fiancial collapse II can't be far behind with this crap going on.

new$ · Nov 20, 2009

Here's one for a big stepper:

http://www.latimes.com/classified/realestate/hotprop/la-fi-candy21-2009nov21,0,3463239.story

pitz · Nov 20, 2009

Yeah no kidding, all these loan programs are like giving heroin and crystal meth to an fat man with a broken leg, and then expecting him to go out and run a marathon.

Sure, he might be able to do it for a while, but in the end, he will collapse into a pile of fat.

Scataphagos · Nov 20, 2009

Quote from pitz:

Yeah no kidding, all these loan programs are like giving heroin and crystal meth to an fat man with a broken leg, and then expecting him to go out and run a marathon.

Sure, he might be able to do it for a while, but in the end, he will collapse into a pile of fat.

Your imagery is great... perhaps you can get a job writing for Obama.."pile of fat"... LOL

number22 · Nov 20, 2009

Quote from pitz:

Yeah no kidding, all these loan programs are like giving heroin and crystal meth to an fat man with a broken leg, and then expecting him to go out and run a marathon.

Sure, he might be able to do it for a while, but in the end, he will collapse into a pile of fat.

peilthetraveler · Nov 21, 2009

Quote from new$:

Here's one for a big stepper:

http://www.latimes.com/classified/realestate/hotprop/la-fi-candy21-2009nov21,0,3463239.story

You really gotta be a fool with new money to pay 150 million dollars for that. It would actually be cheaper to buy a couple of the 5 million dollar properties next to that house, demolish them, then build an identical house save 100 million in the process.

It cant cost any more than 20 million to build a 56k sq ft house. A normal house can be build for about 80 to 100$ per sq ft. so even at $300 per sqft, it would be under 20 million to build an identical house. Heck..even at 1,000$per sq ft it would still only be 56 million.

ralph00 · Nov 21, 2009

^^^ The strangest part of the article describes how, during construction, Spelling would dash across the street to buy a hot dog from a street vendor. What kind of neighborhood is it that there are street vendors selling hot dogs? The only places I know where this occurs are busy downtown areas. I've never seen a hot dog vendor in the burbs. What's up w/Holmby Hills?

romik · Nov 21, 2009

In poker when you're down 80% in order to recoup losses psychology wins many times & you go ALL_IN. USSA is going ALL_IN.