Less than 20% fall in home prices will destroy the banking system?

Discussion in 'Economics' started by moo, Mar 28, 2007.

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  1. Or perhaps people will be less willing to walk away because they have been seeing all over the news that subprimes are not going to be easy to get anymore.
    #31     Mar 29, 2007
  2. One last point.

    The only ones who will be walking are the ones who bought recently and were late to the party. If you bought a 300k home out west 3 years ago and now it is worth 400k, with a 20% correction it will still bring 320k. Do you think this person is going to walk ?
    #32     Mar 29, 2007
  3. blast19


    Do you think everyone who bought homes in the last two years have good equity in their homes? You probably do...nevermind.
    #33     Mar 29, 2007

  4. Actually it is in Imperial beach . My apology.
    #34     Mar 29, 2007

  5. Did I say that ?

    How many loans were wrote in the last 2 years ?

    How many in the last 5 years ?
    #35     Mar 29, 2007
  6. blast19


    And he pays $3,500 in rent? That's insane! I think someone is shafting him. No joke and no offense meant.
    #36     Mar 29, 2007
  7. #37     Mar 29, 2007

  8. It's in imperial beach, I was thinking of someone else I know in chula vista.
    #38     Mar 29, 2007
  9. blast19


    It's not a matter of how many loans were "written" last year or last two years...it's a matter of the loans given, the value of the house at the time of sale, the value now, the location, etc. Look at where the most homes were sold in the last two years and their prices then and now...have fun! :D
    #39     Mar 29, 2007
  10. ElCubano


    I agree.....even if it went to under their purchase price that still isnt reason to walk away. unless they had fancy financing and it causes their monthly payment to go up or interest only loans that are specifically used for short term buys and sells...
    #40     Mar 29, 2007
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