Re: Mortgage loans
I find it hard to feel sorry for those folks. They knew exactly what they were getting into and the huge gamble they were taking. If it backfires, maybe it will teach them not to speculate so wildly in the future. I know of a few people in this area who "invested' in pre-construction deals on luxury condos hoping to flip them before they were finished. I honestly don't know what became of those deals as they aren't people I'm close with, but I wouldn't be surprised to learn that they lost a lot of money.
In addition to more defaults, I think we will also see a rise in the new 40 and 50 year mortgages that came into being in the last year or so, as there will be many people who won't be able to keep their homes with a traditional 30 year loan but can't afford to sell because they owe more than the house is worth.
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Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
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