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I learned this yesterday from the banker with whom I have my own mortgage, in Cobble Hill. To put things in perspective it's less than 5% in the rest of the city. Any ideas as to why these two neighborhoods were dumping grounds for sketchy loans?
They're not "dumping grounds" for "sketchy loans". Please, do your research and you'll see that a very good percentage of home owners all over the country are "under water" or "upside-down" in their home loans.
Oh, and it's not that the loans were "sketchy". It's that people took out loans they knew darn-well they couldn't afford but wanted to, thinking they could somehow pull some magic and afford.
No, Carroll and Red Hook are anomalies with a severe problem. I agree with your assessment of the deadbeats in such homes, but the financial institutions failed to do due diligence in vetting the borrowers.
I also wish the banks would make with the foreclosures already, when they can still find buyers. The last thing I want is the neighborhood next to my own to be lousy with vacancies.
I learned this yesterday from the banker with whom I have my own mortgage, in Cobble Hill. To put things in perspective it's less than 5% in the rest of the city. Any ideas as to why these two neighborhoods were dumping grounds for sketchy loans?
Easy just lower the property values and Vacancies would drop.
When owners, banks, mortgage companies, etc, FACE this fact, the market will settle matters.
There is a buyer for every distressed property...if the price is right. Banks don't want to face this reality PRICE! They would prefer their old appraisals...by somebody's brother-in-law.
So we get this dragged out agony. "Ohhh, it's WORTH $400K but nobody will pay more than $200KSo we CANNOT SELL".... complete IDIOCY!
Perhaps the banks are looking for another bailout so they can continue to make believe they were high rollers...in a game that finally took a look at reality!
When idiots make bad bets they lose money...but when the idiots own the government, the poor taxpayers cover their bets. They stay rich and the poor get poorer.
I learned this yesterday from the banker with whom I have my own mortgage, in Cobble Hill. To put things in perspective it's less than 5% in the rest of the city. Any ideas as to why these two neighborhoods were dumping grounds for sketchy loans?
At this point being under water is not necessarily because of a "sketchy loan". There are people under water who bought their houses in 2005 and put up 30% and 40 % downpayments and who have impeccable credit and high incomes.Unfortunately for them their houses are now only worth about 1/2 of what they paid.
You might join them soon because it is predicted that the national "under water" rate could easily go to 50% in a few more years.
Where is the link to the source information in this thread?
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Dear God, no!
