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Originally Posted by Arbitrary  There is also the possibility that those loans were all bundled together as a AAA rated securities and sold as shares of an investment. |
Thanks for the responses...I better understand why they can't so easily sell these homes for significantly less than what they were bought at. However, it seems like having debt interwoven throughout the financial system was an incredibly bad idea to begin with.
The problem I see, as a potential home owner, is that as a single person earning about 40K/year, there is no way I can afford a home without putting extreme financial burden on myself. If they tighten up the lending practices (which they should) it will require higher interest rates and down payments thus making it totally impossible to afford a home at current price levels. Bottom line is, real estate needs to come down significantly...that or our wages need to go UP to match it.
