These are sub prime notes. Most of the people should not have been homeowners in the 1st place. I have a sister with a financially retarded husband that has one of these. I have been sick with worry for her for 18 months knowing that she will probably loose her house. They have no worries. By the way they went to Europe for a couple weeks for the holidays. Go figure.
Well it's certainly true that alot of folks who never should have been borrowers qualified.
But what happens when the houses go back on the market? What happens to the perceived value of a house YOU or your neighbor just bought?
What happens if the valuations of property nationwide, but particularly in the specific speculative markets start to fall, and qualified homeowners see their assessments drop, and watch their loans turn upside down?
Those loans did not happen in a vacuum. And if they go belly up, the impact will be on more than the single borrower.
Time to short Home Depot.
So you're saying that anyone whose ever had credit issues deserves to rent forever?