Mortgages out of control

[TexasFreedom]

Well it's official.

I have a relative that I wouldn't borrow a match. A lifetime of bad financial decisions as well as horrible personal decisions. His son won't even speak to him (teenage kid, but the kid is in the right). Of course divorced over his stupidity. He's the kind of guy that I want to take 2 showers after shaking his hand.

(drum roll) He & his new wife (God only knows what's wrong with her) got a mortgage to buy a house! This guy is constantly broke (he's in his 40's), borrowing to even make his rent. Changes jobs regularly (translate: gets fired for being stupid).

How in the world did he qualify for a mortgage? His primary leech-victim (his father), I know he didn't borrow him money.

My guess is that mortgage loans are again as bad as 2007. Borrowing buckets of money to people you know will default (only question is when).

Anyone else seeing loans like this?

 

[Maverick]

Housing loans have entered a new bubble similar to the one that caused the bust in 07

 

[Arcticdude]

If it does turn in to a bust like in '07 it will create some great buying opportunities in real estate and stocks. Always looking at the bright side.

 

[drt4lfe]

Money is about useless anyway......the debt is what 18 Trillion ? 50 Trillion ?......what is a 100k Mortgage actually worth these days ? The Un-Funded Liability is 500 Trillion ? do we even know what the debt is ? defaults probably out number loans given in a lot of places....in my area the Absolute Auction signs on Repo Homes is growing everyday.....never seen any prior to last year or so even during the big crash....I think the whole economy is a bubble.....Housing market always has been IMO....Houses are like vehicles, they cost many times more than what they are actually worth...