Housing Threatened by Defaults in Sub-Prime Mortgage Market

TheDudeofLife · Feb 17, 2007

Quote from 2gtt:

This is one of the more insightful statements I have read on ET.

You are the only other person I know who believes this.

I stay short Lumber for the last 9 months.

Thank you.

does this poor sap remind you of someone you know?

or his wife?

http://www.youtube.com/watch?v=Ubsd-tWYmZw&mode=related&search=

yxy · Feb 17, 2007

2gtt:

The end all is what he said.
Those two combined give a sell signal.

Totally. I agree.

August · Feb 17, 2007

Quote from TheDudeofLife:
url]http://www.youtube.com/watch?v=Ubsd-tWYmZw&mode=related&search=[/url] [/B]

Wow. Whoever approved making that add should be fired. Is it a joke? If so it might be over the head of most. But... seriously.... that's surreal.

It's funny to read the youtuber comments completely missing what is really scary about that - people marching like lemmings into a future bankruptsy - and instead focsing on the buying being "p-whipped."

shelupinin · Feb 21, 2007

http://www.marketwatch.com/News/Sto...x?guid={08BF0083-33AD-47C7-9EDC-3AB1085BBE43}

fearless9 · Feb 21, 2007

What happens to the home owner when their subprime lender goes broke?

jficquette · Feb 21, 2007

Quote from TheDudeofLife:

Don't get married then. She will nag you day and night to buy a house.Women's nesting instincts to own a home are very strong. I have a theory that post 9/11 fears exacerbated the female nesting instinct. Many people made decisions to overpay for homes.. Finanical difficulty is one of the leading causes of divorce. I wonder how many marriages will be destroyed because people made imprudent decisions to buy a home.

Women have always wanted a home. That is the main reason they marry. Home and Kids.

It was the 1% interest only, no doc loans that caused the problems, not some new paradigm shift in women's nesting instincts.

John

NasdaqTrader · Feb 21, 2007

Quote from fearless9:

What happens to the home owner when their subprime lender goes broke?

I would guess that some other lender buys the loans. Someone please correct me if I'm wrong.

fearless9 · Feb 21, 2007

Quote from NasdaqTrader:

I would guess that some other lender buys the loans. Someone please correct me if I'm wrong.

I imagine you are right.

If the subprime lender goes belly up for say 30 cents in the dollar in an asset fire sale, the home owner's mortgage of say 300K is effectively being sold for 90K.

It is a great pity that the home owner is not offered the opportunity to better this offer.
They could then approach another lending shop or bank with the deal as they would no longer be subprime since they now have equity in their home.

Arnie · Feb 21, 2007

Quote from TheDudeofLife:

does this poor sap remind you of someone you know?

or his wife?

http://www.youtube.com/watch?v=Ubsd-tWYmZw&mode=related&search=

Bet he never thought he have to pay that much for a piece of ass. What a chump.

dandxg · Feb 21, 2007

Quote from Arnie:

Bet he never thought he have to pay that much for a piece of ass. What a chump.

I would never, and I mean never let me RE agent sway me like that. That's just laughable. I remember when were pre-qualified. Oh your fine you can afford to spend xxx amount more if you like. No thanks I said.

I have the chance to speak to a few self made multi millionaires. One of them said something I always remember.........No one cares as much about your money as you do. I think the saying goes a fool and his money are soon parted. Perfect for this sucker, uh I mean commercial.