[RICKYLANDRY]

:eek: is the market really in a crisis today

[Fr_Chuck]

it is if you are a lender who did not use good money management and really looked at credit reports.

it is if you put too much into homes that were valued to highly.

what is happening today is merely a correction, houses got over valued, to the econommy. 100,000 houses were being appraised for 150,000. Lenders started allowing people with 300 or 400 credit scores to borrow, they allowed mortages that would adjust ( go up greatly) and allowed people to borrow on interst only.

What was suppose to happen. In fact for a good investor, the next year may be the greatest investment time ever. The 100,000 house with 140,000 loans will be selling at foreclosure will go back to loan company, they will end up selling them for 70,000 most likely after holding them for a year. And in a few years, that 100,000 will be back to 100,000 ( my guess)

Same thing happens to the stock market, even the large falls, are still higher than some of the medium days of two years ago.

[passmeby]

Excellent answer, Fr Chuck! You're absolutely right on all counts.

[ISneezeFunny]

What is going on in the real estate market...

Well, to put it lightly, you ever see a dog sniff a spot in the grass, and then pee directly upon it? That's what's going on in the real estate market right now. It's being pissed upon.