Yet another "Best Congress that $$ can buy"

[WillisWG]

folks should have realized there was a problem when a doublewide trailer was listed for over 1 million in California

but the view was great...

 

[Gramps]

they likely would have borrowed at any rate. it was greed. no one thought the real estate market would ever drop. i had friends who actually argued this with me "real estate never drops in california." unbelievable.

Exactly. Some people discovered they could get a loan buy a house. The price of home, the percent rate of mortgage did not matter. Once approved they were determined to buy.

Banks were approving people for way more house than they could afford.

Real Estate agents realized they were selling payment, not price of home, so they pushed the ARM's to sell higher priced homes. They would show the nicer homes and some buyers would think... wow we can buy this, we can actually have this house, sign us up.

If people would have used a little common sense, none of this would have happened.