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Seem reasonable at the time

October 19 2011 at 10:37 AM
  (Login Nafana)
Forum Owner


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
    1. Talk about me being jaded! - Nat on Oct 19
      1. Not Jaded, Nat, Balanced - Bob on Oct 19
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          1. Did You See "Frontline" program - Bob on Oct 19
            1. Immigration - Nat on Oct 19
              1. What would be the point? - Bob on Oct 19
                1. Only a bit facetious - Nat on Oct 19
     
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