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Im voting McCain Palin on november 4th
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<blockquote data-quote="The Other Side" data-source="post: 415809" data-attributes="member: 17969"><p>Well put and a good explanation. However, we all must keep in perspective the realities of what happened here. All things are NOT equal in the home buyers market.</p><p> </p><p>Take San Diego County in southern california for example. It is now estimated that 75% of all the homes sold in the last 5 years were 0 down, Interest only loans with large resets and large balloon payments exceeding 25K in 5 to 10 years.</p><p> </p><p>These homes median price range is a staggering 1.2 million dollars.</p><p> </p><p>Today, these homes are valued at approximately 700K to 800K and sinking fast as foreclosures pile up.</p><p> </p><p>The vast majority of people who bought these homes could not afford them in the first place and each was sold on the "idea" of spec buying and never having to realize the reset or balloon.</p><p> </p><p>This county will be devastated in the coming 18 months with mass foreclosures.</p><p> </p><p>This was a common practice in California and there are many counties going into the same direction.</p><p> </p><p>Paper millionaires with an ATM card attached to the home. People withdrew money on equity in the homes to buy the motorcycles, RV's, cars, boats, trailers and other crap.</p><p> </p><p>This "falsely" stimulated the economy.</p><p> </p><p>A credit balloon filled with toxic gas that just exploded in our faces!</p><p> </p><p>Now we are stuck breathing it together.</p></blockquote><p></p>
[QUOTE="The Other Side, post: 415809, member: 17969"] Well put and a good explanation. However, we all must keep in perspective the realities of what happened here. All things are NOT equal in the home buyers market. Take San Diego County in southern california for example. It is now estimated that 75% of all the homes sold in the last 5 years were 0 down, Interest only loans with large resets and large balloon payments exceeding 25K in 5 to 10 years. These homes median price range is a staggering 1.2 million dollars. Today, these homes are valued at approximately 700K to 800K and sinking fast as foreclosures pile up. The vast majority of people who bought these homes could not afford them in the first place and each was sold on the "idea" of spec buying and never having to realize the reset or balloon. This county will be devastated in the coming 18 months with mass foreclosures. This was a common practice in California and there are many counties going into the same direction. Paper millionaires with an ATM card attached to the home. People withdrew money on equity in the homes to buy the motorcycles, RV's, cars, boats, trailers and other crap. This "falsely" stimulated the economy. A credit balloon filled with toxic gas that just exploded in our faces! Now we are stuck breathing it together. [/QUOTE]
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Im voting McCain Palin on november 4th
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