One in every family

[Kate]

In the past five years I suddenly knew lots of people who were mortgage brokers. In fact in our extended family one individual was arranging everyone's mortgages. It seems most of the clients were friends and family. Loans arranged included an Interest Only loan, a No Doc loan and a 3 yr ARM. Since the end of the bubble this has now naturally brought about some extremely strained relationships. I imagine this is common and brokers network of clients usually began right in the family or circle of friends.

[TJ_98370]

[Ubersalad]

[deejayoh]

[TJ_98370]

Ubersalad,

I do not disagree that if you were lucky enough to time the market there was the potential to make big bucks. With 20-20 hindsite, I wish I would have bought / sold just as you suggested. In my case, my sister and brother-in-law had no funds to invest of their own and I wasn't willing to "gamble" with my mother's funds, especially since she may really need those funds for her care later on.

The thing that really got to me was the total, unshakeable belief of my sister and brother-in-law that this was the new economy, that real estate never depreciates, that rich immigrating Californians were going to sustain the boom forever, that with the new financing products affordability was never again going to be a problem, ............... readers of this blog have heard it all before.

[Ubersalad]

When the paycheck is coming in and you're hardly doing any real work, it's hard not to be blinded by the belief that this will go on forever. It's always easier to judge from outside looking in.

I actually had a pretty big fight with the Christmas dinner host that were friends with my gf for a long time, because he was getting very emotional when I ask for supporting evidences that this trend would continue forever. He suggest that market value of 5 years ago is way undervalue, and current medium price is the new basis for future gain. Then he proceed by suggesting immigration and old money were the factors on the appreciation.

Anyway...I learned not to talk about housing bubble with anyone, because the notion of real estate depreciation is still unimaginable for most people.