Investors!

[ultracapper]

Originally Posted by Sightseek

Wouldn't your last sentence in your first paragraph support that appraisals are part of the problem alongwith tighter underwriting standards for protection of possible problems in the future? I appreciate the clarification as I work for title, not in mortgages, but my work obviously relies on the latter so I try to follow this in the news, particularly because we have had clients experience more difficulty than in the past.

at the time the appraisals were made, they may have been borderline o.k. for the most part, if a borrower could hang in for a year and make all their mortgage payments on time, and as long as it's not a negative amortization situation, the appraisal, in most markets, will become mute because of property appreciation. this doesn't apply to the more volitile markets like socal or sofla. obviously, socal is a major problem anytime this kind of thing happens. the damn place ought to be it's own country. it's just totally economically a different world than anywhere else in the u.s.