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**bestbyV** · 01-24-2006, 01:38 AM

FYI,

According to 'The Wall Street Journal', 43% of those buying houses the past few years have put down 2% or less!

With interest rates heading up, and housing prices going the opposite way, there is a real chance that many newer owners will owe more on their houses than they are worth.

And you know there is a peoblem when even that rag starts voicing concerns......................

All that's needed is a 5% dip in market values, and thousands of home-owners are in real trouble!

But this isn't necessarily an "economy" problem. It's a combination of a LOT of wrong things - including lenders WANTING to sell mortgages to people who have no business getting those kinds of loans.

It's all a paper numbers game, and the day WILL come when there's a correction that will take place. When that happens, there will be "wailing and gnashing of teeth"!

01-24-2006, 01:38 AM	#5
bestbyV Join Date Oct 2005 Posts 406 Senior Member	FYI, According to 'The Wall Street Journal', 43% of those buying houses the past few years have put down 2% or less! With interest rates heading up, and housing prices going the opposite way, there is a real chance that many newer owners will owe more on their houses than they are worth. And you know there is a peoblem when even that rag starts voicing concerns...................... All that's needed is a 5% dip in market values, and thousands of home-owners are in real trouble! But this isn't necessarily an "economy" problem. It's a combination of a LOT of wrong things - including lenders WANTING to sell mortgages to people who have no business getting those kinds of loans. It's all a paper numbers game, and the day WILL come when there's a correction that will take place. When that happens, there will be "wailing and gnashing of teeth"!
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