Sub Prime Mortgages and South Florida Real Estate Economy.
Saturday, August 25th, 2007As the owner of 2 properties that have temporarily frozen in value, I too have decided to get rid of my teaser mortgages and so I have refinanced them and now I pay at least the full interest payments on my loans. I noticed that even with all of the recent crackdowns in the mortgage industry, Life still goes on. And we are not having a Real Estate bubble!
Homes are still being sold for more than the owners paid.
The profits are not as exagerated as they were 3 years ago, but I have the confidence that the market will continue to move up slowly perhaps at a 5% per year rate
But that could still make you 20 to 25 percent in less than 5 years time.
Now what is happening is that all of those Mickey Mouse Mortgage companies and brokers are going down. They used to approve anybody, using dirty tricks, fake pay stubs etc. Now I am glad that the Banks are cracking down on all of this Fraud. And the truth is that we all should make money honestly and this world would be a much happier place.
