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I agree.
Also yes the homeowners were led down a rosy path of future value. I know for a fact that some mortgage brokers could not explain the loans they were making to my buyers.
It was crazy, people would ask "how much is the payment?" then say OK, "let's do it" Amazing that most did not seem to care the rates were for six months or in some cases only one month. I have seen mortgages that the rates changed the very day of settlement. And most of these notes were not written as sub prime. They BECAME sub prime after the rates doubled or tripled in the first year.
But just think about this for a second. We think there are a lot of sub prime loans out there now, just wait until next year. These people have to live somewhere and the mortgage vultures will come up with another scheme to screw these same people again. Just watch...
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