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Old 05-01-2018, 01:34 PM
 
1,046 posts, read 714,474 times
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Quote:
Originally Posted by pipsters View Post
Did you read the article I posted or view the plotting chart? Clearly the subprime borrowers were not the instigator that the media would make it seem.
I don’t care what your chart shows. In our San Antonio neighborhood , the ones who loaded up their crap and disappeared had subprime loans and openly bragged about it. They also got home equity lines of credit even though they had put no money down. The furniture store trucks ran back and forth all day.
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Old 05-01-2018, 01:39 PM
 
728 posts, read 574,769 times
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Quote:
Originally Posted by Sharpydove View Post
I dont care what your chart shows. In our San Antonio neighborhood , the ones who loaded up their crap and disappeared had subprime loans and openly bragged about it. They also got home equity loins of credit even though they had put no money down. The furniture store trucks ran back and forth all day.
Really? You know what the credit scores of all your neighbors? We are supposed to believe that?

Maybe I am weird but does anyone else here know the credit scores of all their neighbors? Or even ANY of them?
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Old 05-01-2018, 01:42 PM
 
377 posts, read 100,865 times
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Quote:
Originally Posted by TimAZ View Post
Sounds vaguely familiar:

http://www.freddiemac.com/singlefami...df/homeone.pdf

Freddie Mac is offering conventional mortgages with 3% down, no income restrictions -- what could possibly go wrong? Gotta keep pushin' that rope!
nothing wrong with that, FHA has been doing that for decades, borrower pays a loan insurance.
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Old 05-01-2018, 01:43 PM
 
1,046 posts, read 714,474 times
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Where did I say I knew their credit scores? What I KNOW and what I SAW was them abandoning the homes they never should have been qualified for in the first place.
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Old 05-01-2018, 01:52 PM
 
728 posts, read 574,769 times
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Quote:
Originally Posted by Sharpydove View Post
Where did I say I knew their credit scores? What I KNOW and what I SAW was them abandoning the homes they never should have been qualified for in the first place.
So you have no idea if they were subprime loans or not. That was my point. And as I said earlier the subprime loans were not the issue.
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Old 05-01-2018, 02:00 PM
 
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Yes I do! They TOLD us over the two years. Three different families TOLD us when they let us know they were mailing in the keys. We were stunned.
Oh my God, it is pointless trying to discuss/debate with know-it-alls who actually know nothing.
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Old 05-01-2018, 02:07 PM
 
Location: Gilbert, AZ
3,003 posts, read 1,705,089 times
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Quote:
Originally Posted by MrRational View Post
Until they need a LUMP OF CASH to do a major and even expected expensive repair
like the HVAC equipment or a new shingle & gutter job. They won't have it.

Exactly. Someone who can't come up with a down payment of more than a few percent is unlikely to properly maintain a house. If they are lucky and the value goes up enough that they can extract equity before the first big repair hits they might be okay. Otherwise the bank is likely getting the house back at some point in the future.
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Old 05-01-2018, 02:10 PM
 
7,024 posts, read 6,657,986 times
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Quote:
Originally Posted by Rambler123 View Post
Yes and no. The ratio of income to housing prices is not as bad as it was back in the Bubble, but it still isn't good. Following are approximate values you can find online.

2006:
Median household income = ~$50,000
Median home price =~$246,000
Ratio = nearly 5 to 1

2017:
Median household income = ~$58,000
Median home price = ~213,000
Ratio = about 3.7 to 1

So, that makes the current situation appear a lot better... except it isn't. The old rule was to never buy a house more than 3 times your gross household income. Yeah, yeah - "today's low mortgage rates let you buy more!" And nobody mentions today's sky-high costs for education and health-care, or today's dismally low job security levels or the lack of guaranteed pension funds.

It's not 2006 all over again but, yes - houses are still too expensive and people are still buying more than they can really afford. But this will burn out with a slow fizzle vs. the huge "bang" in 2008 since the income to price ratio isn't as bad, IMHO.
Median price for homes sold and for sale is much higher now.

https://fred.stlouisfed.org/series/MSPUS

This is evidenced by the news and comments regarding the shortage of starter-level priced homes for first-time homebuyers.
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Old 05-01-2018, 02:14 PM
 
Location: Gilbert, AZ
3,003 posts, read 1,705,089 times
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Quote:
Originally Posted by Labonte18
Picking out one thing or one group is silly. Lots and lots of fault to go around.

Yup. Everybody up and down the food chain headed for the easy money trough to look for their portion of slop. The Wall Street folks, rating agencies, originators, mortgage brokers, wannabe homeowners, step-up homeowners, small fry investors, etc. Regulators totally dropped the ball too.
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Old 05-01-2018, 02:43 PM
 
728 posts, read 574,769 times
Reputation: 822
Quote:
Originally Posted by Sharpydove View Post
Yes I do! They TOLD us over the two years. Three different families TOLD us when they let us know they were mailing in the keys. We were stunned.
Oh my God, it is pointless trying to discuss/debate with know-it-alls who actually know nothing.
I'm not claiming to know anything. Just look at the data. Subprime loan defaults had a negligible increase over the recession. I mean it's pretty clear they were not the cause.
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