http://www.brokerforyou.com/brokerforyou/housing-market-weve-been-down-this-road-before.html San Diego real estate - San Diego real estate market 'Inside' views & opinion Sat, 12 Jul 2014 10:45:48 +0000 hourly 1 http://wordpress.org/?v=4.0 http://www.brokerforyou.com/brokerforyou/housing-market-weve-been-down-this-road-before.html/comment-page-1#comment-84653 Wed, 20 Jul 2011 14:28:19 +0000 http://www.brokerforyou.com/brokerforyou/?p=4646#comment-84653 The problem is legislative at the core. From Carter to the present, the percentage of loans that must be made to ( losers. sub-prime, liars etc.) has expanded from app. 3% to close to 25%. So here’s the banker, “hmmm, if I make 3 loans to qualified borrowers then I have to make 1 which is sure to go belly up. If I don’t make the bad loan I get investigated and persecuted/prosecuted. Or, I can borrow from the Fed at 10 basis points and relend to the gov’t at 150 basis points, 0% risk.” You figure it out.

]]> http://www.brokerforyou.com/brokerforyou/housing-market-weve-been-down-this-road-before.html/comment-page-1#comment-84652 Wed, 20 Jul 2011 14:25:19 +0000 http://www.brokerforyou.com/brokerforyou/?p=4646#comment-84652 Many San Diego real estate investors instead of buying a $350,000 house, they opted to “go big” and buy a $695,000 house and flip it before the adjustable mortgage changed. Well, the value crashed and they could not sell so they got stuck. Others who have lost jobs got hit with the double whammy of no income plus shrinking house values. They definitely got the shaft.

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