The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Real Estate Investing

URL:  https://boards.fool.com/quot100-ltv-loans-wont-cause-anyone-to-lose-23740139.aspx

Subject:  Re: GA Deal I'm working... Date:  2/22/2006  10:40 AM
Author:  namkato Number:  7642 of 14302

"100% LTV loans won't cause anyone to lose their homes. Nor does a RE downturn force anyone to sell, or increase anyone's mortgage payments."

No, but it makes the entire housing market foundation a lot shakier.

"The risk to the borrower lies in ARM's. If the rate on an ARM goes above what the borrower can pay, then they may lose their home. Which the lender sincerely hopes won't happen if the house has lost value."

ARMs are bad enough, but he has her in a neg-am, the most toxic loan yet invented. Lots of unsophisticated buyers do not fully comprehend what they can do to the buyer. So the lady is doing 100% LTV, neg-am, she is losing equity daily.

Here's some unsophisticated buyers who are suing:


http://thehousingbubbleblog.com/?p=142
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us