polksalet Posted July 26, 2007 Share Posted July 26, 2007 cool non-word word eh? i'll work on getting my thoughts together on this Quote Link to comment Share on other sites More sharing options...
Ramhock Posted July 26, 2007 Share Posted July 26, 2007 Wells Fargo shut down their sub-prime shop, today. Quote Link to comment Share on other sites More sharing options...
Chavez Posted July 27, 2007 Share Posted July 27, 2007 Sub-prime is done. Quote Link to comment Share on other sites More sharing options...
broncosn05 Posted July 27, 2007 Share Posted July 27, 2007 Why?? dealing in noncomforming mortgages is not the smartest move right now(IMO). Exactly. If you've missed the oppurtunity to short than just wait to the market to settle and eventually it could easily turn into a solid buy. I expect it to repeat the course of what happened when NEW collapsed. Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted July 27, 2007 Share Posted July 27, 2007 Wells Fargo shut down their sub-prime shop, today. They used to be my mobile home outlet. Back in 2003, they would even finance 20 year old single wide trailers on a 30 year conforming fixed rate. Only about 1 out of 50 loans I sell today is manufacutured. There are no investors willing to assume the risk. Countrywide will not buy the paper. In Montana, the wages are very low. Mobile homes are still an attractive option for many low income familys. That option is going away quickly. Most of my customers are high end consumers. However, it is sad that the options for the lower class is diminsihing. Quote Link to comment Share on other sites More sharing options...
Chavez Posted July 27, 2007 Share Posted July 27, 2007 it is sad that the options for the lower class is diminsihing. That is why the real estate market runs a very real risk of complete implosion - the entry-level buyers are being priced out of the market. WIthout that influx of fresh money, the whole deal goes teats up. The reason the sub-prime lenders got so big was they found ways to jigger the numbers so that the entry-level buyers (or those who wanted to step into a house well beyond their means) COULD afford to make the monthly nut. For a time. Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted July 27, 2007 Share Posted July 27, 2007 The reason the sub-prime lenders got so big was they found ways to jigger the numbers so that the entry-level buyers (or those who wanted to step into a house well beyond their means) COULD afford to make the monthly nut. For a time. That is the shame of it all - lower income folks were duped into thinking the interest rates wouldn't go up so soon. Its their fault for buying into it, I suppose thinking they'd increase their income or, at worst, sell the house for a tidy profit during a time of seemingly never ending price hikes. When the increasing rates and decreasing values hit at the same time, they were toast - no way to refi. Out in the Inland Empire, the situation was made worse by the long commute. On top of slowly losing their homes, the poor schmucks were driving 3-4 hours roundtrip every day to their jobs for the privilege. Oh, and its hot and smoggy. Quote Link to comment Share on other sites More sharing options...
TDFFFreak Posted July 27, 2007 Share Posted July 27, 2007 That is the shame of it all - lower income folks were duped into thinking the interest rates wouldn't go up so soon. Its their fault for buying into it, I suppose thinking they'd increase their income or, at worst, sell the house for a tidy profit during a time of seemingly never ending price hikes. When the increasing rates and decreasing values hit at the same time, they were toast - no way to refi. Out in the Inland Empire, the situation was made worse by the long commute. On top of slowly losing their homes, the poor schmucks were driving 3-4 hours roundtrip every day to their jobs for the privilege. Oh, and its hot and smoggy. Not to mention the cost of gas that comes along with those commutes. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted July 27, 2007 Share Posted July 27, 2007 This makes rental properties more attractive. Quote Link to comment Share on other sites More sharing options...
muck Posted July 27, 2007 Share Posted July 27, 2007 Or a better way to 'skin the cat' (so to speak) as it regards good intry-level houses. I'm seeing quite a few deals with "tax incentives" built in for the developers so that they can provide lower cost houses and still make a couple of bucks (and employ the exact sorts of people that will be buying these entry level houses). Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted July 27, 2007 Share Posted July 27, 2007 This makes rental properties more attractive. Indeed. I wonder if apartment builders / owners saw this coming up to three years ago? In my area, apartments have been going up all over the place over that period. They started building them when vacancy rates were north of 6%. Now vacancy rates are back to 2% or less. Pretty good business acumen by some folks. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted July 27, 2007 Share Posted July 27, 2007 Most of my customers are high end consumers. However, it is sad that the options for the lower class is diminsihing. [Judge Smails] Well, the world needs ditch diggers too. [/Judge Smails] Quote Link to comment Share on other sites More sharing options...
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