Those who cannot remember the past are doomed...

Subprime mortgages are making a big comeback and seem to be accelerating. They are even being bundled and sold as mortgage-backed securities. This is what blew up the financial system in this country just one decade ago. In terms of its potential impact on New York real estate, think about this: The number one thing that is making current applicants "subprime" is that they have already been... [more]

Subprime mortgages are making a big comeback and seem to be accelerating. They are even being bundled and sold as mortgage-backed securities. This is what blew up the financial system in this country just one decade ago. In terms of its potential impact on New York real estate, think about this: The number one thing that is making current applicants "subprime" is that they have already been foreclosed on at least once before. So now people that are in the habit of walking away from properties when things head south are being given the opportunity to buy again. New York used to be somewhat immune to this because it was 90% coops/10% condos. But now that the number of condos has surpassed the number of coops, and certainly in terms of what's on the market for purchase has well surpassed them, this potential stop Gap has greatly diminished. https://www.blownmortgage.com/subprime/ [less]