short sales: Stop The Insanity RE Downward Spiral Banks Take Note!! The Trickle Down In RE - 12/31/08 03:20 AM
  TRUTH IN LENDING
 
This country is quickly spiraling out of RE economic control. Here is the scenario. House #1 goes into Foreclosure because an ARM and value drops. Bank forecloses and lists the house on the MLS for 55% of the original loan. Now this is where the domino effect starts. Now the neighbors see this house which is comparable square footage lot size etc, to their home. So why should they continue paying on a mortgage that is higher than the property value? Even though they can make the payments the lender will not do a loan modification … (0 comments)