Home Builders Pushed 100% Loans to Move Properties
A recent report from the Laborers' International Union of North America stated:
Homeowners who purchased at newer developments are more likely to have 100%-financed, adjustable-rate mortgages because of builders' efforts to push risky subprime loans. As a result… certain new-home communities are now littered with vacancies created by foreclosures that are pushing prices down. Zeroing in on Maricopa County in Arizona, the report found that more than a third of mortgages made by the finance arms of three major builders there — KB Home, Lennar Corp. and Richmond American Homes — were five-year ARMs set to adjust in 2010 and 2011. San Diego County real estate blog
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3 Comments
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The lending industry has been grossly unregulated. If real estate agents (including/especially those who represent new construction) treated customers like some of the unscrupulous lenders that I have encountered in the past 15 years, they would have lost their licenses and been sued. San Diego Dental Implants
Most very well qualified buyers were unfairly priced out of the market due to abnormal home prices, inflated demand for most sub-par properties, and predatory lending practices didnt help neither. It’s time for us to go back to the basics. Its only fair that hard working Americans have a fair shot at the American dream. Need i mention that the Iraq and Afghanistan wars arent helping neither? Orange County Legal Advice Attorneys
Prices will drop to the level of qualified buyers. I think that values soared to unsustainable levels because Alt A and subprime programs increased the pool of qualified buyers well beyond the general population increase. Las Vegas Lawyer