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Seem reasonable at the time

October 19 2011 at 10:37 AM
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Nat  (Login Nafana)
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Response to Colored Glasses


It's easy to look back now and criticize but when the FHLMC mortgage rules were changed the economy was booming and there was an assumption that a buyer's income would increase over time so that a loan they were not qualified for under the old standards would be paid- and that even if it wasn't- the value of the house would increase so the increased market value would cover any loss of default. No-one foresaw the dive in the economy that happen after 2000- or the fact that real-estate speculators would go around buying homes just to "flip" them for higher prices. This was happening like crazy down here- and ofcourse realtors- who make their commission based on the selling price had every reason to inflate prices as high as possible. The real-estate market was just insane here- nearly every day I got offers in my mailbox to buy my house and/or the adjoining land even though I had never listed it and had no intention of selling. But that's was how eager speculators were for real-estate to "flip".

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  1. It shouldn't have been a mystery or a surprise. - Bob on Oct 19, 2011
    1. Talk about me being jaded! - Nat on Oct 19, 2011
      1. Not Jaded, Nat, Balanced - Bob on Oct 19, 2011
        1. Democrat criticism - Nat on Oct 19, 2011
          1. Did You See "Frontline" program - Bob on Oct 19, 2011
            1. Immigration - Nat on Oct 19, 2011
              1. What would be the point? - Bob on Oct 19, 2011
                1. Only a bit facetious - Nat on Oct 19, 2011
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