A large percentage of the subprime borrowers should never have even tried to buy the houses they are in and the sooner they all loose them to foreclosure the better off the economy wil be. Agreed?
Mortgage Loan Officer 15 years
Where do you people get your data??
The percentage of all loans in foreclosure right now is less than 1.5%, and the number of delinquent loans still stands at less than 5.25%.

http://www.axcessnews.com/index.php/articles/show/id/12279
To: Tomk

I work for a mortgage company that DID NOT get involved in all of those stupid high-risk subprime loans... We do just fine helping normal people buy homes that they can afford with sensible government backed programs like FHA and VA.

We are doing just fine right now.

If it is too difficult for you to fill out a few forms, pay your bills on time, and prove your income, you probably should look for an apartment.

Best of luck to you.
No, I am not a moron with no common sense. I am just someone who has witnessed first hand the sequence of events in this industry over the last 15 years.

True, people can lose their jobs due to a variety of reasons beyond their control. It has been happening since the beginning of time. That is not the problem now. It has and will happen, even in the best of times.

The problems (some of them at least) are, easy money for unqualified borowers and speculative buying based on absurdly overestimated rates of appreciation.

People are not losing money because their homes are going down in value, the value was never there.

As difficult as it may be for some, the correction is nessecary. Just as tech stocks in the '90's were overpriced, housing in the '00's, in some markets, is overpriced.

Ever hear of the Dutch Tulip Mania of the 1630's?

Sorry but you are incorrect, yes there are about 23% of the sub prime mortgages are going into default or are at least 60 days over, but 20% of the prime are either in or expected to go in 60 days late, or foreclosure.

There is lots of $ to be made by offering a high risk loan only to plan on foreclosing on the property in the near future. The lender will acquire the down payment, the closing costs imposed, late fees for the mortgage if it lasts a short period of time. Here's the good part...the lender will get the property back and it likely would have increased in value over time. It's just like a rent to own 17" color TV for $29 mo for 36 mos. That is something VP Chaney would call a no-brainer. Anyway, the people that tried to buy the homes at least gave it a shot and tried to pursue a dream. That is called character and drive, and it take an adult to be mature enough to take a risk that may just work in their favor. What are you doing thinking about other peoples business anyway. You worry about yourself if you must. Also, that scenario would not affect "the economy ". In your context the "economy" is non existent. Your question really takes the cake as far as relevance goes.

When crooked/greedy real estate agents quit faking credit for them to do so!