<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> "If this ain't a sign that the RE market has topped what is?
They come up with new crap everyday, gotta love them int only loans, so when rates go up and equity goes down they are buried,
this sounds like yet another new product.
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How bout the newest customer rip off...."Negative Amoratization" Loan where the schmuck pay the lowest monthly payment with only a quarter the interest on the loan at around start rates of 1.79 - 2.12%?? Then the remaining interest unpaid gets slapped on the principle at the end of year to make the loan even larger?!
Personally I think homeowners will refi in and out of ARM products for a long time now and sell there homes w/ min equity gained
They come up with new crap everyday, gotta love them int only loans, so when rates go up and equity goes down they are buried,
this sounds like yet another new product.
"<HR></BLOCKQUOTE>
How bout the newest customer rip off...."Negative Amoratization" Loan where the schmuck pay the lowest monthly payment with only a quarter the interest on the loan at around start rates of 1.79 - 2.12%?? Then the remaining interest unpaid gets slapped on the principle at the end of year to make the loan even larger?!
Personally I think homeowners will refi in and out of ARM products for a long time now and sell there homes w/ min equity gained
Home loans are starting to resemble car loans. You know the ads on at 2am "got a job, you got credit!" or "bankruptcies and repos...no problem we finance anybody!". I don't know if prices or equity will tank necessarily, I just think it will cause economic troubles in the booming states like CA and NV because there is this huge business around building new homes and selling and financing. If the activity clams up and we see very little flow as one would have to expect, that could cause some big problems as those people will be out of work or making a lot less money. In areas where the home market has gone up more modestly and where new construction isn't that big a deal it probably will be less a shock. Places like Sacramento and Las Vegas could get hit very hard by this, I think people underestimate just how much of the economy is propped up by this one industry. Everything from home stores to banks will suffer.
In the late 80's alot of the Jap's woes can be tied to ludicrous realestate lending practices.
In AC last week a 30something pit boss was telling me "how easy it is to flip stuff for massive profits"
There is just a ton of anecdotal evidence around that the speculation is getting way out of control, on all sides.
Bill I know that ultimately when the rates go up, the supply dries up as people will not sell for XYZ when they could of gotten XYZ X 2 8 months ago. Still though loose lending will come home to roost eventually.
In AC last week a 30something pit boss was telling me "how easy it is to flip stuff for massive profits"
There is just a ton of anecdotal evidence around that the speculation is getting way out of control, on all sides.
Bill I know that ultimately when the rates go up, the supply dries up as people will not sell for XYZ when they could of gotten XYZ X 2 8 months ago. Still though loose lending will come home to roost eventually.
The water issues continue to get worse, but they built that big pipe some years ago from Lake Mead and it was a temporary solution. When population doubles over about 15 years though no solutions really exists. The latest is talk of banning grass and vegetation from many spots and probably eventually from all new houses. Desert landscaping does go a long way but nothing but conservation and buying up water rights from farmers will do.
