House of Cards (60 Minutes piece on current Foreclosures)...

[duke777]

Everyone got to see this coming years ago!

I mean if you see Porn, Viagra, Nigerian banker and then cheap mortgages in your spam folder......you know it's being abused!

[Fired Yo Momma]

yea you are right, but on the same note overall its the buyer's responsiblity as well to check and read over the small print. Its just like a car salesman (no offense car salemen here on STR) but they want that sale and will do anything to get it.

[Schecky]

Caveat Emptor
Even the Romans knew it.

[Reedster]

I thought this article from Slate was interesting. They talk about how some states tried to take action to stop sup-prime loans, but were trumped by the Federal government. Again, our leaders look to making a buck instead of working for the benefit of the country. I'm sure their song is a different one today.

http://www.slate.com/id/2182709

~R

[RustyIron]

Originally Posted by Reedster

They talk about how some states tried to take action to stop sup-prime loans,

I'm not sure that it's the states' place to interfere in free enterprise.

Interestingly, it's the subprime lending that was partially responsible for the run up in prices. The more buyers you have for any commodity, the more upward pressure there is on prices. Good examples are petroleum or steel.

GENERALLY, the home buyers who bought within their means and who are in it for the long term will not be adversely affected by this current correction. Likewise for money lenders and investors who loaned money to more traditional buyers.

Tradition IS traditional because it tends to work. Newfangled schemes are generally something of which one should be wary.

There were a few STR folks recently asking for advice. Investment advice that you read on an internet forum is rarely worth the paper it's written on, so you're probably best hitting the "delete" key now. Read on at your own risk.

Many first timers are mired in inaction because they want nothing less than a mansion on the hill with pool and tennis court. Maybe something more modest is appropriate. Building principal on a smaller place is far better than flushing rent money down the toilet.

Plan on keeping property for the long term. Every time you trade up, the real estate agent takes six percent of your investment.

Don't try to time the market for the "best" time to buy - unless you're psychic. It's better to buy now and take a five or ten point hit in value than to continue to pay rent for years on end.

Especially if you're young and on your way up, consider buying the most you can possibly afford. While the next year or two might be difficult - no filet mignon, no new bikes, domestic beer - in a couple years you'll be making much more money at work. What seems like a daunting mortgage payment today will seem like chump change in a few years.