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Many folks[me included] blamed wall street for the greatest part of the housing bubble bursting. guess what? they have put on the white hats and are riding to the rescue. How? Investment groups are buying forclosed homes, revamping some of them, and making them rental propertys. So the guys who bought a 150,000 house and lost it, is able to rent it. Of course the new owners didn't pay that amount. Wonder how this is going to work out?
[QUOTE=kygorski;503949]Many folks[me included] blamed wall street for the greatest part of the housing bubble bursting. guess what? they have put on the white hats and are riding to the rescue. How? Investment groups are buying forclosed homes, revamping some of them, and making them rental propertys. So the guys who bought a 150,000 house and lost it, is able to rent it. Of course the new owners didn't pay that amount. Wonder how this is going to work out?[/QUOTE] my guess would be, they get to buy them for about 60% of there value, and they let people rent them for 3 or 4 years. and if the housing market gets turned around and the prices go back up. they sale them and the renters are homeless again. those guys only care about the bottom line.
Most foreclosures were to folks who should have NEVER purchased a house to begin with. SO WHAT if they lost their house and someone WITH the money purchased it.
If someone lost their dream home that cost 150k, that is their problem........no one elses.
Later,
Geo
I was turned down on the first house I wanted to buy. We had the minimum down payment, our debts were manageable, but at the mortgage meeting the loan guy explained why they wouldn't thje loan. Sure we could make the payments, yed my income was at the legal level, but we would be living on next to nothing. They said we would be able to get a loan from another source easily enough, but give it some serious thought. We bought our second choice, were able to buy a couple of new cars later, I could have my boats,we could vacation, and it was less than a block from a great parochial school. We applied for the mortgage from the same bank, and we paid it off. Of course in those days bankers had ethics. They kept the mortgage, they used to do that in the old days, not sell it to another party the next day. That bank is still in businesss, not part of a conglomerate.
I blamed the idiots who felt like anyone should have the right to the "american dream" even when they could not afford it or were responsible enough (credit). This included past presidents and politicians.
Some dimwitted fools thought they could make a mortgage payment just because they qualified for it and then live off of pennies the rest of the month with no regard for gas, food, cable, insurance and on and on. No planning for the future at all. Granted this isn't a total description of what happened to all people but a large majority went through this.
I could have lived in a very very nice place but didn't want to be tied to my house and not have money to invest, vacation, spend, raise children, go out and basically live a decent life without having to be worried about a $2000 a month bill each month. Plus who would clean that place??? Not me!!! So I would have to hire maids!! Heck with that....:)
Thats where honest bankers needede to come up front, and didn't. Its basic, envy is what drives the economy. I want makes the registers ring. And advertising is the means of creating envy[one of the deadly sins]. Not all humans are born smart or geniuses, never were, never will be. Supposedly thyere were commandments to protect the addle brained to some extent, for some reason they just didn't take hold.For preditors to thrive, you have to have prey.