[4RE KLR]

Well The seller cannot pay any of the buyers down payment. I have sen instances wher ethe developer piad some point sand he now has a felony aginst him. (True story) So the idea that the developer bought these down to get a better rate is not the case. The homeowner could hower do so. BUT in the past few years you have not had to buy them down especially on a ARM. They were low to begine with and the buydown was not needed. hard to buy down a .5% ARP.

The loan terms are adjustable. Meaning the mortgage companies may adjust them "at will" givien the adjustment dates on the contracts. Every month, quarter semi annually or annually. It was whatever they cold dream up.

That is what is the kicker here there are so many different types of loans that one solution will not fit all problems as it so seldom does.

You are right that there have of late been a GIANT surge in bank construction on every corner. They all have money to loan right now to. The problem is they have raised the qualifications and the terms to a point that with the problems of the last few years noy many can qualify for a new loan. Whew...

The banks and mortgage companies could if they wanted curtial this problem and save themselves in the process. However history tells us that will not happen.

NO the flippers and multi home buyers should not be bailed out.

"Live buy the flip; die by the flip"