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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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Doesn't anybody believe in the Business Cycle anymore...
A question what is going to happen when those Interest Only Loans come due and the owner suddenly realizes that his equity in the home is gone....and he owes more than it is worth...all with a higher payment.....
Does anybody from SO CAL remember what happened in Moreno Valley in the early to mid 90's.....to refresh some of your memories and to let those readers who aren't familar with the MV story...you'd drive through neighborhoods where 10 or more houses on a street would be Boarded up as in foreclosed upon....people tried to refi not only to find the equity was gone and they were upside down on the existing loans, but the house was worth less than the week before.... NOW add those interest only loans scenerio into the mix....
Now now every area of the country is facing a diaster but those high PMI %%%% areas sure are....
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"Some Observer"
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