Sub-Prime Mortgage Meltdown

[Altius]

Truth, exaggerated or not taken seriously enough?

Subprime mortgage defaults will increase this year and holders of securities linked to those home loans may record losses well into next year, JPMorgan Chase & Co. analysts said.

The worst is not over in the subprime mortgage market

 

[Gymgurl]

Most the members on EF are not not smart enough to understand you....Just so you know

 

[alien amp pharm]

Most the members on EF are not not smart enough to understand you....Just so you know

Shut up!








....wait, explain to me what he is talking about before shutting up. Thanks.

 

[Gymgurl]

Im not sure lol

 

[BNG]

I don't think it's getting worse. Sub-prime is a riskier investment, real estate is cyclic and always will be. I'm in the industry and we have a program that is tailored to immigrants that is growing off the hook! The Hispanics are buying foreclosures like crazy right now here. That's pretty savvy of them I think.

 

[the_clockwork]

actually there are a lot of mortgage brokers here.. I know several helped me before I purchased my first house..

 

[slat1]

People are morons. When the market went crazy a few years ago everyone got in and had no idea what they were doing. There was ZERO cash backing the earnings of most stocks then. When the market tanked everyone was up in arms!
In the last year in Ma. mortgage defaults were up 90%.
How is that possible you ask. The dumbass's were getting adjustable rate mortgages.
People don't seem to research big decisions in their lives. It blows my mind.
I think the new qualification standards for lending should help save people from themselves...

 

[the_clockwork]

People are morons. When the market went crazy a few years ago everyone got in and had no idea what they were doing. There was ZERO cash backing the earnings of most stocks then. When the market tanked everyone was up in arms!
In the last year in Ma. mortgage defaults were up 90%.
How is that possible you ask. The dumbass's were getting adjustable rate mortgages.
People don't seem to research big decisions in their lives. It blows my mind.
I think the new qualification standards for lending should help save people from themselves...

it's stupid b/c a house is the biggest investment the majority of america makes

 

[TanOsaurus]

exaggerated.... & the U.S. government (tax-payers) shouldn't pay to bail out anyone involved in the sub-prime market.

A mortgage is the largest contractual commitment most people will make in their lives. If they didn't seek the legal advice they were instructed they should, before hand then too bad. Suck it up or get out.

 

[BNG]

I don't think ARMs are all bad for every person. Some make sense. SOME make sense. The trouble was there were people buying houses getting ridiculously bad loans because they thought they'd buy one before they went any higher and then be able to sell at a huge profit.

It's all about shopping and understanding what you're getting. My company offers Option ARMs, with caps, and a reasonable period. We have people come in now looking to refi a house that's dropped in value, they have to cap on the APR, and are tied into it for five years before they can refi with no penalties. I feel bad for some people but I can't help them all.