patrick.net

I don't know if hose people are "rich". Many middle class people bought homes that were a million with neg am loans and predatory lending. You can't blame the people as much as you should blame the government for letting all regulation go on lending practices. Many people didn' t even understand the loans they got into.

Bullcrap!

People (EVERYONE that bought at insane prices) wanted a house, they would have signed a firstborn clause, to get the loan.

So I read the title before I read the article :). After reading it I still agree with my original post, however many "rich" or "upper middle class" are walking away just becuase they have a "bad investment" on their hands that is a fact! However, the public shouldn't make blanket statements that everyone is just walking away because of a bad investment. We don't know everyones situation, maybe they lost their jobs, in this economy many of the "rich" lost their jobs. I also think many people even those in the upper middle class are posers and still bought more than they could afford. I think many people did regardless of econimic class.

Condohelp says

We don’t know everyones situation, maybe they lost their jobs, in this economy many of the “rich” lost their jobs. I also think many people even those in the upper middle class are posers and still bought more than they could afford. I think many people did regardless of econimic class.

True dat.

However, many people with higher incomes from the professions due to the bubble - loan officers, realwhores, investors, etc - didn't plan for a rainy day. They were raking in the bucks. That goes for construction workers too... I know many who bought every toy known to man and spent $20,000 (not a typo) on horses for their little kids to use for 4-H... and have lost it all. If only they had saved a bit and bought something they could afford - they could have paid it off and had sufficient funds left over.

I'd like to see one single person that bought in 05-07 that didn't buy with the intention of flipping the house with in 3 to 5 years, and had no intention of entertaining the worse case scenario where they actually were forced into taking those loans to term.

It has been for me distinguish who was using who, and frankly have been both appalled and disappointed that the banks were the villain in this by the "Predatory Loan" perspective.
That really helps them dodge a big bullet, from a fraud wrap to letting them off with a slap on the wrist trumped up unfair business practice accusation. "Oh they were stupid and you took advantage of them."

When the real crime was the money trail that lead to the County Appraisers door.
These appraisers and inspectors are Contractors, and have a better grasp on Real Estate value than speculation and say so. These guys were enticed to make those numbers higher, by someone, they weren't intrinsic nice guys here. They are City and County workers.

The banks should have never loaned 300K-400k on 99k-120k ranch shacks in historically ran down RE distressed communities. Houses that were bought for 90K then flipped two times in a year to end up at 225K with in 3 years. It all ballooned and scaled up from there.

Now forget that Horhey and Luicia Menedez only makes 29K between them and got loans for that amount. That's wrong too, but the bank should have never loaned that kind of money on every shack standing. They should cap out at country records and if speculators want to run the market up from there. The bank loans based on fair tax value, and if want to pay more, it comes out of the buyers pocket.

Where was the guys at Washington in charge of the Real Estate division of Homeland Security?

OH? It's not that kind of "HOME" land.

Tenouncetrout says

I’d like to see one single person that bought in 05-07 that didn’t buy with the intention of flipping the house with in 3 to 5 years, and had no intention of entertaining the worse case scenario where they actually were forced into taking those loans to term.

I know many who bought and actually believed they'd be able to afford long term. Not everyone was a flipper. They were naive, stupd, and otherwise lacked pragmatism...