Sub prime mortgage explanation

[smilin]

Here is an honest unbiased explanation for the mortgage mess.



YouTube - The Long Johns - The Last Laugh - George Parr - Subprime

 

[somdrenter]

Yep, I think they pretty much hit the nail on the head.

 

[somdrenter]

Here's a good read, if you're up to it

Real estate: Buy, sell, or hold?
That's the question homeowners are asking in the midst of the worst real estate slump in decades. Our exclusive calculations can help you figure out what your house will be worth in coming years.
By Shawn Tully, Fortune editor-at-large
November 7 2007: 11:47 AM EST


(Fortune Magazine) -- You can't blame America's homeowners for feeling hopelessly confused. From suburban porches and city terraces, they're gawking at a housing world gone mad. Just 18 months ago, folks on a tony Linden Lane or a leafy Boxwood Court were astounded to see the colonial their neighbors bought for $600,000 in 2000 sell for $1.5 million after multiple bids. Now they're just as bewildered to watch the same model across the street go begging for months at $1.1 million without a single offer.

Real estate: Buy, sell, or hold? - Nov. 7, 2007

 

[Patch Tuesday]

Real estate: Buy, sell, or hold?
That's the question homeowners are asking in the midst of the worst real estate slump in decades. Our exclusive calculations can help you figure out what your house will be worth in coming years.
By Shawn Tully, Fortune editor-at-large
November 7 2007: 11:47 AM EST


(Fortune Magazine) -- You can't blame America's homeowners for feeling hopelessly confused. From suburban porches and city terraces, they're gawking at a housing world gone mad. Just 18 months ago, folks on a tony Linden Lane or a leafy Boxwood Court were astounded to see the colonial their neighbors bought for $600,000 in 2000 sell for $1.5 million after multiple bids. Now they're just as bewildered to watch the same model across the street go begging for months at $1.1 million without a single offer.

Real estate: Buy, sell, or hold? - Nov. 7, 2007

25% drop in prices predicted in that article for the D.C area. I wonder if that's on top of the price declines we've had already?

I like this quote in the slideshow:

"Note: People typically won't spend more in monthly costs to own a home than they would to rent. While prices soar from time to time, sending the ratio to exceptional heights, the relationship eventually should return to its historical average."