If someone paid too much for their house, I don't pity them.

S

seasideheights

They knew what they were buying & how much they could afford.

Housing prices still need to correct to get back down to where people with median salaries can purchase them.

Will that take people down who bought too much house than they could afford? YES.

Will that take speculators down who did the buy it & flip it game? YES.

Will foreclosures spike? YES.

Is any of that a problem? NO.

It's called a market correction.

Deal with it.
 
We are leveraged 33 to 1. Somebody bail us out.

Somebody bail me out. I ain't making no payments on something that lost 30%. Just walk away like a real man. I gotta make payments for 30 years? Why didn't somebody tell me? Hey, that's not my signature.

Next thing you will hear is about a new car bubble collapsing. A car that you bought a year ago has lost 30% of its value. Bail me out.
 
Quote from seasideheights:
They knew what they were buying & how much they could afford.
Housing prices still need to correct to get back down to where people with median salaries can purchase them.
Will that take people down who bought too much house than they could afford? YES.
Will that take speculators down who did the buy it & flip it game? YES.
Will foreclosures spike? YES.
Is any of that a problem? NO.
It's called a market correction.
Deal with it.
More...
If you paid too much for a stock, I don't pity you... Deal with it.
 
I agree. 99% of people are delusional when it comes to what their house is worth. Also, they think whatever they paid for their house, it is automatically worth 30% more one day later...because they are so smart.

My wife is an appraiser and we see this shit constantly.
 
Quote from seasideheights:

They knew what they were buying & how much they could afford.

Housing prices still need to correct to get back down to where people with median salaries can purchase them.

Will that take people down who bought too much house than they could afford? YES.

Will that take speculators down who did the buy it & flip it game? YES.

Will foreclosures spike? YES.

Is any of that a problem? NO.

It's called a market correction.

Deal with it.
More...

Greenie cut rates too far, this made expensive houses look affordable based on the monthly teaser rate.
Dumb buyers were told not to worry, they could just refi to a new teaser in a few years.

The buyer, the lender and greenie are all to blame.

Deal with it? Yeah people are dealing with it by walking away..

Everyone is else is dealing with it through higher inflation..
 
Why is the margin for stock purchases 50% and not 5%, or Hell, even 0%?

For the same reason it's stupid to allow someone to sign for a mortgage with:

1. 0% Margin (no down payment)
2. 125% LTV
3. Non-documented income
4. Teaser rate on an ARM to boot

Why was this behavior even ALLOWED, let alone encouraged?

Who authorized such and why?

Why is there not regulatory oversight to prevent such stupidity?

We ALL know the answer already... :mad:
 
Quote from gnome:

Why is the margin for stock purchases 50% and not 5%, or Hell, even 0%?

For the same reason it's stupid to allow someone to sign for a mortgage with:

1. 0% Margin (no down payment)
2. 125% LTV
3. Non-documented income
4. Teaser rate on an ARM to boot

Why was this behavior even ALLOWED, let alone encouraged?

Who authorized such and why?

Why is there not regulatory oversight to prevent such stupidity?

We ALL know the answer already... :mad:
More...


http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm
Posted 1/20/2004 1:31 AM
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.

Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
 
Quote from vhehn:

http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm
Posted 1/20/2004 1:31 AM
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.

Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
More...

Great find!!!!
 
Quote from vhehn:

http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm
Posted 1/20/2004 1:31 AM
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.

Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
More...


LOL, great idea...NOT. Hey it worked and boosted the markets at the time. My friends working at banks were giving loans out to everyone! Stated no doc's...no problem. 500 FICA, no problem. We got your back. Just write up the loan and process it. A year later you want to refinance a 2nd mortgage. No problem! Just keep borrowing baby! Countrywide has your back.:)
 
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