California Foreclosed Homes - CA

[JUKIO01]

can someone tell me why foreclosure are becoming a big problem?

[ForeclosureHelp2008]

Because people were buying more home than they could afford. Lenders let it happen with nonsense like no documentation loans and "stated loans" also known as "liar loans" because 9 out of 10 time the stated income was a lie. Lenders also qualified people using the intro rates that only last a year or 2 instead of the longer term fixed rate.

If you know someone who is behind on their payments, I can help them avoid a foreclosure.

ForeclosureHelp2008 dotcom

[shikira]

I think this is how it worked.

All the people in the US who could afford a loan already had one. So, to keep the economy chuffing along, the fed reserve bank kept interest rates low. Now, one of the ways to get money out there into the economy is by the banks creating it into existence and for them to do that they need people to lend. The only ones left to lend are those who shouldnt lend..ie the people who cant pay it back.

..TBContinued.

[shikira]

Meanwhile, the banks bundled up those mortgages, sold them off as AAA+ securities to investors like me. Now, because the USA created so much money (see M3 account) the value of the dollar dropped and things started going downhill, so people started defaulting on their mortgage payments, the fed cant raise the interest rate cuz that will cause more defaults..

[shikira]

meanwhile, investors who bought those securities and invested are now losing money.

credit is drying up (remember thats how money enters the economy too). Ben Benarke the fed reserver governor is on record saying he will drop money from helicopters if he has to ..so expect more inflation.

[moniequa]

Shikira, thanks for your explanations, but should I get angry at the stupid poor who borrowed the money and bought the house they could afford?

[JUKIO01]

nah, its cool i already know the answer, back then i didnt but now i know. the real reason is because the illuminati's are dilebertely destroying the dollar as in devaluing. thats why gas prices are fuckin high and food. very soon, this fall i believe america will be struck into a depression, then the north american union will come. thats the answer

[moniequa]

I think we really need hyperinflation because people still have way too much money to spend.  It seems no matter what happens we continue to have buyers.

[pqwilrj]

@moniequa It's unsustainable. Eventually the chickens are going to come home to roost.

[moniequa]

@pqwilrj, so when will the buyers stop buying because that is what I want to see.