Reply to Remember the recent bubble and crash -- it could happen again

Forum Index » Real Estate

Reply to "Remember the recent bubble and crash -- it could happen again"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]As someone who works with proprietary mortgage data for a living, this is patently false. People in this area are incredibly leveraged, and the most common buying strategy is to use every last cent of your liquid assets as a down payment and take on the biggest loan the bank will give you. This makes the market very vulnerable to even mild shocks like jnterest rate hikes. I still see loans with minimal down payments on million dollar properties. For instance PenFed brought back a zero down mortgage last year that allowed for DTI in the 40s. This is insane, and yes, these loans are being used to bid things up around the metro area.

At the lower end of the market, as someone pointed out, FHA has replaced subprime. You can get a loan with sub 600 FICO and/or less than 5 percent down in some cases. This is just one of the many reasons FHA is currently insolvent. You are delusional if you think the DC market is dominated by buyers with 20 percent down and 760 FICO.

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]As this market becomes increasingly more crazy, let's all not forget that these were our same thoughts back in 2005.  It's human nature to forget that and think that "this time is different."  It's scary how similar the things I'm seeing and phrases I'm hearing out of people now are to those in the previous bubble.  It's almost deja vu.

It's impossible to know what will happen to the housing market in the future and how long this ride will happen, but it's still wise to have some caution.

[/quote]

What mechanisms of the previous bubble are still at play?  [/quote]

Human beings are involved.[/quote]

Yes the robot drone buyers are going to fix the issue. WTF are you talking about. All buyers have the largest down payments and are the most qualified in the history of man. The laws have changed in terms of the bank assets etc...

Just cause you want it doesn't mean it is.[/quote][/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics