patrick.net

What do you all think of the idea of anyone who is paid by commission "To GET the DEAL Done" by advising a 'buyer' to go for the min down, max payment etc...a claw back of all paid commissions for any deals that wind up in default in the first 60 months?  That way we would have a sort of equalization at the buyers end before any more NEW LOANS go bad, I think being able to put down as little as 3% is insane.  Having terms longer then 7 years is also insane, lets go back to the day when it worked WELL,  and by worked well I MEAN IT WORKED, Virtually NO REPOs unless death, or illness made repayment impossible.  20-50% down, MAX 7 year loan, NO 2Nd's, and NO Equity Lines, you want your equity, you sell.

Can't have your cake and eat it to, and when you think about it, that is EXCATLY what a 2ND line or equity line is, having the home (the cake) and borrowing against value of today and adding say a pool (eating it to= pool). 

Not to mention the DEMOGRAPHICs are in a major change mode, we are aging as a society and our growth is going to take a decade or two holiday, and in that time CONTRACTION is a NICE way of SAYING going to feel like a major recession /depression for next 10-20 years... I know no one wants to hear that, BUT you tell me where the buyers are coming from, where and what are they going to working doing what, building what? What companies are going to be paying in the numbers needed to make it possible for what many of you think that RE is headed back up, (that is laughable)