Find Out How We Can Be Able to Own A House In This Recent Economy - Another Series

[Dwan Twayford]

11
Jun
WHEN WILL THE HOUSING CRISIS END - PART 3
Written by admin

Hi Friends,

Okay…so now you know that statistics for loans in 2000 and in 2006…so let’s pick up from there…

In 2000, 81% of the people who bought homes used regular financing - meaning they saved a down payment, qualified for the loan, and could afford the property as well as the “fixed†payment.

We saw that number dramatically change in 2006 when 81% of the people who bought homes used CREATIVE financing. Meaning they could NOT afford the property or the “real†payments. Most of the creative loans offered a “fixed†payment for 2, 3, 5, or 7 years. That is what enticed people to do these creative loans in the first place.

You could buy a $200,000 property and get a “temporary†mortgage payment of $700. When payments began to reset, some payments doubled! Imagine the horror of discovering that your mortgage payment DOUBLED when your income did not change. You would immediately try to sell or refinance.

Most people assumed that when their payment reset in 2, 3, 5, or 7 years that they would refinance their property or sell it for a quick profit. The problem is that so many mortgage payments reset at the same time that too many properties came on the market all at once and prices took a nose-dive.

Do you remember when the bottom started to fall out of housing prices? In 2008. What happened in 2008? Hundreds of thousands of mortgage payments reset. ..http://theieu.com/blog/?p=394