SubPrime Mortgage?

Question

Anyone else feel as if the subprime mortgage problem is being taking a little too seriously? To be honest I'm not even sure there is a problem. Anyone here not able to pay off their mortgage because they bought too much house?

Answer 1

THis whole economy has been built on housing and continued sprawl. Credit is tightening and suddenly the whole house of cards is coming down. Kunstler has been predicting this for years. http://kunstler.com/

Answer 2

I think the subprime mortgage problem truly *is* a problem because of a "liquidity" problem right now. It will become worse if investors start backing out. Equivalent to a run on the banks like what happened in the '30s. Just my opinion, though.

Personally, I bought only what I could comfortably afford and didn't lie on my loan application. Because I bought only what I needed, I'm able to pay my full mortgage twice a month and I'll have it completely paid off soon. Much better than that extra square footage I'd be paying to heat and cool and spend my time cleaning.

Answer 3

Actually , they are not yet getting how serious it is .
Mortgage defaults are skyrocketing which means lots of lenders (which use funds from mutual funds , pension funds etc) will be going down .
Several major brokerages have already had funds implode .
If you don't think it is a problem , you've been skipping the finance report pages the last 6 months .

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Answer 4

Predatory lending practices, Wall highway misuse of credit default swaps, a housing bubble, loss of sufficient oversight, the loan marketplace working amok, careless lending, and so on. there have been many books written on the subject count. in case you haven't any longer found out by now that undesirable Republican rules almost crashed our total financial gadget, you will by no capacity study. it quite is by using organic stubbornness on your section. Blaming Democrats won't forestall a similar debacle interior the destiny if the classes from the modern previous are omitted and the comparable rules are accompanied returned. we are going to be interior the comparable subject returned yet, next time, the government would possibly no longer be able to bail out the financial institutions. Then the completed financial gadget would be irretrievably wrecked.

Answer 5

I disagree with King Tut. I think this is a result of foreign money (from the middle east BTW) that was pumped into the US housing market. Why do you think all of a sudden banks started giving loans to high risk borrowers? They had extra money to lend and figured they get a little gravy by setting them up with ARMs. I hate to play the part of chicken little but I think it's ecomonic terrorism. I know! It sounds crazy! But that's my story and I'm stickin to it!

It's a crisis but we have economic mehanisms in place to prevent a catastrophe like the stock market crash of the 20s. It sucks but it's not the end of the world.

Answer 6

i think it is a lot serious and we are just seeing the tip of the ice burg.. go to credit on answers and every other question seems from some one who is about to loose their house due to poor money management.

i think the stock to invest in is "cardboard box" (for the homeless) i can see a lot of folks from the home depot (and i have some of their stock) to the construction industry losing jobs. which will not help the situation but only add fuel.

even in middle america which used to be made up of debt free folks we have more than our share of over extend folks.

i wish you were right but either way i will sleep well to night my house is paid for.

Answer 7

LOL!

Er apart from the facts you could be right...

let's not forget that they resold the risk several times over.

mortgage criteria tightening in an overextended credit bubble - you ain't seen nothing yet...

Answer 8

judging by your question you are not taking it serious enough,