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Originally Posted by pgardn
That article brings in a very interesting phenomena that may be a regional issue. A 500,000 dollar mortage loan is very big where I live. The fact that these companies were not looking closely at the credit backgrounds just seems very ill-advised. I just dont get it. I thought the idea was to lure buyers that could pay their mortage...? I guess they thought they could just sell the mortage to other companies that were willing to take more risks?
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A lot of Mortgages are assigned right at the closing table, which is part of the problem now. These secondary lenders have been burned and now are tightening up their requirements.
It's insane how much the price of real estate varies in this country. When I lived in RI, you couldn't get a decent house that you would be willing to raise a family in for less than $290K+. When I lived in Kentucky, I lived with someone who had a 3 bedroom, 2 bath ranch on some land that was built to their desire for less than $90K. I think the housing prices in NY are extremely fair. You know things aren't looking good when Home Depot reports losses.
