Comments on: Mortgage Giants To Rescue Distressed Borrowers

By: Sunil Sethi

Sunil Sethi — Sat, 21 Apr 2007 10:48:11 +0000

right now the risk to these is with wall street, but now wall street has convinced congress that the govt. should pick up the burden. that’s some pretty good lobbying.

By: Viewed.mobi » Mortgage Giants To Rescue Distressed Borrowers

Viewed.mobi » Mortgage Giants To Rescue Distressed Borrowers — Fri, 20 Apr 2007 20:58:50 +0000

[…] Understanding Real Estate Fees - Real Estate Fees » original newsUrgent Update — Google Now Offering Property Search Within The Search Results!! - Hold the phones!!! Google just took a radical step into the real estate arena by offering a property search tool right within their search engine results pages for real estate related searches! Here is a screen shot: » original newsWhy Do So Many Agents Fear Zillow? - Agents fear Zillow. Appraisers apparently fear Zillow. The Arizona Board of Appraisal sends Zillow “cease and desist” letters? » original newsA Year’s Worth of Real Estate Blog Ideas, 7 - Part 7 in this list of real estate blog ideas covers everything from increasing participation on your blog to taking readers on a trip to a local attraction like a Zoo or a Museum. Learn how to build community resources out of simple posts that will drive more search traffic back to your site while keeping the content interesting and useful for readers. » original newsMortgage Giants To Rescue Distressed Borrowers - The heads of Fannie Mae and Freddie Mac said Tuesday the mortgage finance giants are developing new types of loans to help distressed borrowers with high-risk mortgages keep their homes at a time of rising foreclosures. » original news […]

By: Marc

Marc — Wed, 18 Apr 2007 02:30:24 +0000

Mike,

I agree with you that greed took hold. Even first time buyers had dollar signs in their eyes in the last few years. Every one had developed a short-term mentality. Flippers replaced day traders in the latest get rich quick gold rush.

When will people learn?

By: Mike

Mike — Tue, 17 Apr 2007 22:18:29 +0000

The greed from everyone jumping into the housing boom over the last 5 years created artificially inflated house prices. Investors account for nearly 26-30%(maybe more if we knew the real story) of the purchasing of these subprime mortgages trying to ‘get rich quick’. The rest of the mortgages were purchased by just about everyone with the same mindset of, “I got to get in while the getting is good”.

A correction in the housing market is absolutely necessary. Home prices are beyond the affordability of the average paycheck and it’s destroying our quality of life. In some areas like San Diego, affordability runs at 8-12% of the population can afford a ‘MEDIAN’ priced home.

Investment is a risk. The problem became that there were so many wan-a-be millionaires, like your neighbor who took out an equity loan on his house to buy another, that drove the market higher and higher. I am sure they would be laughing all the way to the bank if they made the right decision. However, it was their ‘choice’. Their risk and it’s their responsibility to bear the pain of their mistakes.

Let the market fall back to a reasonable level of affordability, period.