I know a REAL HOUSING FINANCE EXPERT!

My game is shameless.  I have a good friend who is a Housing Expert and I shamelessly Jacked her comment from my post yesterday and Used it to make a post. 

You should go show her some love

As a housing finance expert, I am really annoyed at this whole notion that a whole bunch of Muufuucas went out and blatently bought houses they could not afford.  While there was some of that, the data has never demonstrated that shit to be true. As a matter of fact 2006 and 2007 data demonstrate that nearly 40% of mortgages delinquent were held by owner/investors. i.e. folks who just want to get paid.  Additionally, the reason a lot of folks homes are unsellable or have mortgages that are upside down is because they were overvalued by who? The banks and mortgage brokers.  Appraisers have been warning about pressure to appraise upward and the problem it might cause as the market got to costly for new buyers to enter.  This is especially true in hot markets.

Many people are losing their shirts because of over valuation not imprudent home purchases. As a matter of fact nearly 25% of the folks who are currently in pre or foreclosure are there because of other economic conditions–not sub-prime loans.

Lastly, once again this thing most vastly effects minority homeowners. Financial literacy is key to buying a home. It is easy to say, that people were being greedy. But once again, financial literacy among minorities and lowincome individuals makes it difficult for homeowners to understand how to work it out when they get into trouble. Its always easy when you have the knowledge to think that others should too.