Comments on: How to handle a Real Estate Collapse

By: brokersleaveyoubroke

brokersleaveyoubroke — Fri, 10 Mar 2006 21:18:27 +0000

People who usually always want 30yr fixed do not understand mortgages and the products out there.

Sorry mr. loan officer, they ARE the ones who understand the products out there. Only people who don’t understand will get sucked into one of your dangerous products that allows them to buy a house they can’t afford. When there are millions of people in foreclosure I hope the gevernment goes after the people that profited from selling them dangerous mortgages.

By: bfatz

bfatz — Thu, 09 Mar 2006 18:05:49 +0000

People who usually always want 30yr fixed do not understand mortgages and the products out there.

Ok mr. loan officer, you play the, “gee the market is just great and people dont understand mortgages game”

Let me say this a 30 year mortgage is piece of mind if you plan on staying in the home for a long period of time (even short for that matter these days).
How can you (mr loan officer) justify an IO, or an AM as a sence of stability?

These fancy mortgages are going to adjust and amortarize over the next year or so and every 6th month there after.

if sally and joe are paying $2200 large on their teaser rate 1.75 no money down no income verification, and it adjust’s to what ever the rate is at that period, and now sally and joe have to pay $2800+-, minus taxes and insurance.

Umm! please enlighten me where you think this is creative financing and stability in such a program. Ill take the 30 year and if i decided to sell at least i know at that time i can not only afford to stay in the home if it dont sell, I know my rate is what it is for a long time.

Oh and I can throw a dart in the bullseye that sally and joes house is upsidedown on the equity so a refinance is out of the question, sorry about that! unless you have $20,000 laying around then we can talk. Other than that sorry.

So yes mr Loan officer you are right people just dont know mortgages, and those are the ones who will be standing at your door saying
“you told me i was going to appreciate 8% a year what happen” i owe $500,000 but the appraisal came in at $400,000.

Umm! do i know you…exactly!

By: Real Estate Investing For Real Blog - BiggerPockets.com » Blog Archive » Foreclosures up 45% in January

Wed, 22 Feb 2006 05:14:45 +0000

[...] We’ve been warning about a possible real estate collapse, and it is starting to look like the numbers are agreeing with us. Foreclosures are increasing rapidly, and there are some pockets where foreclosures make up almost 1 in 500 homes. Sadly, the banks are tempting the uneducated, who get themselves stuck with properties that will inevitably end up in foreclosure. Maybe it is time for the government to step in and help decide if the loans being offered are just too dangerous? [...]

By: Ryan F

Ryan F — Fri, 22 Jul 2005 06:24:55 +0000

I am a loan officer and a real estate investor. I do not really understand how a 30yr fixed mortgage is going to help you? How long have people been saying there is going to be this bubble. I remeber hearing this 2-3 years ago. So are you saying that a bubble burst is going to last more than 10 years? Historically have you seen this happen?
How high do you expect interest rates to rise? Also do you think if they did rise high that the market could take that kind of hit, especially with where prices are? I really doubt it, we would possibly be thrown into another recession. Then rates would fall again. So maybe you should re-think your thoughts on this.
I highly doubt the market could handle rises longer in short term rates for any longer than until the end of the year.
People who usually always want 30yr fixed do not understand mortgages and the products out there.
Good Luck with your blog.