posted on May, 26 2007 @ 02:05 PM
I had worked for a mortgage lender as they went bankrupt in march of 2007, it wasn't pretty. it was a nightmare. The problem was the lender i
worked for was targeting (high loan to value) and the Value of the homes had fallen by at least 20% of what the homeowner expected the value to be.
The second problem is that in a very short amount of time, just a couple months we had 5 loans go into default. When this happens the lender has to
buy the loans back from the investor...and most of the time as with us, the money to buyback the defaulted loans just isn't there, forcing the lender
My take on the situation is; as the housing prices continue to fall and more homeowners are struggling to pay their mortgage on time, and the subprime
market introducing stricter rules...soon there wont be many people who will be qualified to purchase a home, and then less buyers will be in the
market, and then the prices will collapse.
the summer is usually the buying season, because kids are out of school making it much easier to move....however come the fall thats when the collapse
will happen. November 2007.
[edit on 26-5-2007 by Where2Hide2006]