WHEN YOU HEAR TALK ABOUT THE EVIL 100%, ASK THE LOAN OFFICER IF THEY ARE USDA APPROVED?
Often we hear, this or that isn't a good loan, usually a government loan, investigation will ofen show that that mortgage is not USDA or VA or FHA approved.
GET THE FACTS: "Despite the lack of a required down payment, USDA loans historically have the lowest default rate among government-insured loans. The current first-year default rate for USDA loans is 2.5 percent, compared with 7.5 percent for VA and 10 percent for FHA". More. . . . .
IT'S A HOME. The problem with the housing market isn't the little guy that needs a shelter for himself and his family.
NO, IT'S A HOUSING MARKET. The problem with the housing market is that the big guys turned housing into a "market".
YOU FEED MY PAC AND I WON'T TRIM YOUR HEDGE! The problem with the housing market is the Wall Street Gangs that turned housing into a securities market and the government law makers and regulators who were bribed to enable them to do so.
HOME OWNERS AREN'T THE MARKET MAKERS. If "putting some skin in the game" will save the housing market, how to you explain the millions of home owners who put 5-10-20% down and watched "the market" wipe out their investment in their home?
SPECIAL TODAY, HOUSING PARTS!! The secondary market that offered loans with high qualifying ratios, little to no documentation, no brainer automatic underwriting, investors that were hungry for loans to chop up and sell as securities to hungry investors who wanted more, more, more were the cause.
If the demand for more and easier MBSs hadn't existed by the Wall Street Gangs, normal underwriting would have protected the investors, the buyers and the lenders. Of course, the tax payer has paid out about $3.5Trillion to cover the Wall Street losses.
Originally published on June 13, 2007
THE PROBLEM WAS THE 100% LOANS?? Shucks, we've got an entire millions of home owners who did invest 5-10-20% CASH down payments and now they they owe more than the value of their home. How did that work out for them? They'd have been better off to save their cash. At least they'd have cash in the bank to make their payments.
Blaming the little guy is easy. They can't fight back.
Blaming the USDA loans is easy too. Just let them rent. Which is what an additional 6-8% of the consumer is going to have to do. They just went through a foreclosure or short sale. They couldn't buy an outhouse. They'll be feeding the investor class with rent money.
Now that the government has made 100% financing almost impossible, investors are eating the foreclosures up like candy and rents are going up like elevators in a New York skyscraper. $Cha-ching!!
THE AMERICAN CONSUMER WON'T BE BACK for a long time. The little guy will have his revenge.
The 20 Million or so of home owners who can't sell now won't be buying real estate or making any new mortgage loans for years to come.
The 10 Million who have been foreclosed will not be in the housing market or making any new mortgage loans for years to come.
The 20 Million who are making high mortgage payments won't be buying automobiles, sofas, tuition, vacations or anything but shelter and necessities for years to come.
Yeah! Blaming the little guy is easy. They can't fight back.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
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