Great post! 116% financing?!? That’s just wrong. What’s really unfortunate is that companies like Zero Down Mortgage are the ones making tons of money in this bubble with very little risk. As soon as they close the loan, they sell it off to someone else. They don’t lose any money when the borrower defaults.
Posted by NanoWest on 11/01/06 at 05:52 AM
With the inventory of houses in Irvine above 8 months (October ended with 1120 listings and 133 sales) I am sure that there will be a rush to purchase this little condo. I wonder if there will be an increase in hard liquer sales in Irvine so that the people that own these bad investments can numb the pain. ——-
Posted by zovall on 11/01/06 at 08:19 AM
Great post! 116% financing?!? That’s just wrong. What’s really unfortunate is that companies like Zero Down Mortgage are the ones making tons of money in this bubble with very little risk. As soon as they close the loan, they sell it off to someone else. They don’t lose any money when the borrower defaults.
Posted by NanoWest on 11/01/06 at 05:52 AM
With the inventory of houses in Irvine above 8 months (October ended with 1120 listings and 133 sales) I am sure that there will be a rush to purchase this little condo. I wonder if there will be an increase in hard liquer sales in Irvine so that the people that own these bad investments can numb the pain.
——-
Posted by ocrenter on 11/01/06 at 06:50 AM
zovall, these Zero Down Mortgage guys were featured in my City in Focus: Moreno Valley post too.
sounds like the business model may not be working that well.