Question on sub-prime mortgage down costs insurance.?
Have see hundred of stories on sub-prime mortgage defaults, which most if all have down payment insurance, but not one story on how much this insurance covered or who get it. Has anyone seen story on topic purely discussed?Answers: I have never hear of down payment insurance. Most, except all, sub-prime loans own no mortgage insurance.
Was it simply pure corporate greed (subprime mortgages) that got us into this housing mess?
Answers: Don't you believe it. The politicians of both political parties buy votes by giving voters what they want even if they can't afford it. The Fed keep pumping money into the system so that there would be cash available for home loans. They urged lenders to lower their requirements so anyone could buy.
There were a few dishonest lenders just like there are a few dishonest people in every business... but the blame for the mess goes directly to your government. And look what they are doing now... GIVING AWAY MONEY.
Not greed. Making stupid loans is never a good idea because in the end someone gets to hold the bag.
There was tremendous political pressure by regulators to lend to people with “documentation problems” (i.e. illegal aliens) further pressure to lower credit standards to bring cash into certain neighborhoods. (poor ethnic minorities)
In exchange for these stupid loans, our politicians relaxed lending standards that allowed Countrywide (and others) to surpass banks and dominate the residential lending market.
Of course this was quickly taken advantage of as many saw this as a free-for-all and many many loan brokers got rich writing stupid loans, to people who had no business borrowing.
The sad part is, the sub-prime lending market is fundamentally sound and prudent concept (charging a slightly higher rate to people who are challenged on a fixed basis)
The problem was there were yet more charges of “inequality” so eventually, to make everything fair, people with lousy credit and improvable income, were given the exact same loans as people who had perfect credit and excellent jobs.
The loan meltdown and housing collapse is in reality a politically motivated social program. You can see many candidates (Hilary et al) are seizing on this to institute more social programs to keep these bad loans in place by stopping foreclosures and “freezing” rates on adjustable mortgages.
Like free health care, welfare, illegal alien education, this was a well crafted plan to spread socialism, give a lot of money away to the poor, and making institutional investors (like insurance companies and pension funds) pay for it all.
Very clever , not an accident.
Just an opinion.
No it wasn't only corporate greed that got us into the housing mess. It was a combination of corporate greed, individual greed and builder's greed that got us into the mess...
Let me explain.
If it was only corporate greed, this mess wouldn't have happened. Lenders relax their standards and with no personal greed, buyers don't overextend themselves and nothing bad happens.
If it was only individual greed, then the greedy homebuyer (who wants to buy a McMansion or a second home or a spec condo) wouldn't get their loan approved because it's stupid.
When the combination of greedy homebuyers and greedy lenders created demand (much of which was artificial), builders got greedy and wanted to build a lot of expensive houses to fill the demand.
Remember the old expression that it takes two to tango. Or maybe that reality isn't just black and white, but many shades of grey. Both parties were irresponsible and greedy (and not all lenders and not all buyers).
good luck!
Corporate greed was only part of it. There was also consumer greed from people greedy to buy houses that they could not afford. There was also builders' greed from builders trying to build and sell one more house before the market crashed.
Real estate carrer request for information?
Has anyone started off becoming an agent through Long and Foster?is that a righteous place to start?
any advice?
what can i expect?
thankfulness in credit.
Answers: Never heard of them.
I'll assume its a franchise, and beside all franchises, respectively is independantly owned and operated.
Considering you are starting out, you necessitate to know about the training and mentorship programs to be paid sure you get a righteous start.
You can expect to work your tail off for no income, because you only bring back paid if you are closing. You can expect your strong work to pay past its sell-by date down the road and that you will eventually be successful.
Good luck to you!