get poor quick
Question: http://www.usatoday.com/money/economy/housing/2006-10-22-young-flippe…
I’m not sure what was worse- him digger himelf deeper and deeper or the banks lending money to do so without a shred of oversight.
Answer: Don’t worry about the banks…they’ll make out. They always do. Worst come to worst, they’ll turn to the American taxpayer for a bailout. Happened before, will happen again.
As for 24 year old Casey Serin – the old saying applies….”you make your bed, you sleep on it.” What this article didn’t mention that local articles on him did is that he steadfastly refuses to file for bankruptcy. “Considering” is not “doing”. That it seems to me depends on whether you believe the person was simply a “victim” or whether he was his won worse enemy. But, according to the article, it seems, he was his own worse enemy. He “gambled” and he lost. The banks will probable make out in any event, because unless they were dumb enough to lend this guy more than 80% of the value of the house, they have at least a 20% “cushion” to work with. The people that should be worried about, whether it is a bank or some other group, is those who may have given him a second mortgage, because unless they have deep pockets, they are out of luck. And that applies to anyone who may have give him a third mortgage, they are really out of luck, whether it be a bank, savings and loan, or anyone else. Most of the foreclosures in my area were 100% loans including one on my block which I knew the particulars. The banks were giving these loans out like candy expecting rapid appreciation. Of course you pay a slight premium for no documentation and more than 80%. But the premiums are pretty much offset by teaser ARM rates. Most of these loans had government insurance, especially if you were a minority. Loans standards declined significantly in the last four years of the bubble. Everybody wins- the homeowner gets to walk away without a deficiency; the real estate agent and mortgager broker get their commissions, and the banks gets the foreclousure loan made good by gov’ment insurance.
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