how did this housing mess start?

[brokerdave]

one of the real problems was that, they where selling packages and mixing 2 subprimes in every so many alt-a and a papers. sliding them in under the radar.

[texdav]

I thnik we also have to realise that alot of peole made alot of money during this time on homes they bought and sold. Many that moved like three to four times ;maybe under with thier present home but made alot of money.That caused alot of peole to decide that a home was better than investing in the stock market seeig waht their friends had made off homes.For evry person that will lose I would bet there are two-threee that came out like a bandit especailly those that didn't keep moving to biggger and bigger investmants until the bubble burst.

[GeorgiaGirl2]

Originally Posted by rcarrillo

True, but some borrowers were lied to about the terms of their loans or the adjustments that would happen. It is the borrowers responsibility to read what they sign and buy only they can afford, but loan officers should have been more educated about the services they provided and disclosed the risks. Everyone got greedy and just looked the other way to risk.... hoping that the market would only go up.

A agree with you that the borrowers themselves have the responsibiluty to read everything they sign. Further, if they don't understand it, they should seek legal advice not trust the words of the loan officers. There are some very experienced and reputable loan officers out there, but there are so many others with sales tactics similar to those of used car salespersons, ruining the profession for everyone.

[brokerdave]

well stock market isnt predictable but the housing was. i saw charts and graphs a full year ahead of schedule on the real estate market nationwide, from economists. and it has played out to a T, like they predicted.

its too bad the media in this country no longer serves an ethical purpose anymore. its straight business, nothing more. they could have warned people. those 2-5 minutes random segments they aired here and there didnt do anything to get anyone's attention.