The final stage of the housing crash has begun.
Unless you have perfect credit, 20% down and a debt to income ratio under 40%, there is no loan available. And I suspect about 10% of the US population qualifies. Maybe not even that high. That 20% might as well be 2000% for most Americans who don't have $500 in the bank, let alone $50,000 to buy a $250,000 house.
The money shot:
But these days many lenders are anticipating that home prices will continue to fall, so they're automatically discounting every home's appraised value by 10%.
I think 10% is way too optimistic but hey, these guys know what they're doing...snicker, snicker.
Oh the foolishness of people who bought houses in 2006 or 2007 or even the really foolish ones who bought this year.
But what do I know? After all I'm just a renter not living the American Dream. I can't paint my walls. Well yeah I can, actually. I just have to paint them back when I leave. So I have saved potentially hundreds of thousands of dollars by selling when I did and renting since. But I will have to spend an extra $150 to paint the walls back to white when I leave. Hmmm, I wonder if I did the right thing?