Universal Basic Income?

Pretty much everybody knows about it by now   0 votes - 0 %
Some people still don't know about it   5 votes - 100 %
 
5 Total Votes
Flippers by ucblockhead (4.00 / 1) #1 Sun Sep 10, 2017 at 12:56:40 PM EST
I sat on a jury that dealt with a case of mortgages and flippers gone bad.  The details aren't relevant but one thing I did learn is that the loans flippers take out are not the same as the loans normal home owners use.  There are banks that specialize in high-interest loans that are expected to be paid off very quickly.

The loan in question on the trial had an interest rate of (and this is not a joke or hyperbole) 21%.  Flippers take these loans out because they only expect to pay a few months of the mortgage and then get a big payoff when they sell for 50% over what they bought.

It should be obvious that in such a system, not being able to flip the house for significantly more than the combo of the purchase price and the cost of construction updates very quickly can be disastrous.

I don't think it's fair to leave subprimes entirely off the hook.  It was a system of dominos.  Clearly if a lot of subprime foreclosures started showing on the market, prices would be depressed (or really, just stagnate) which would start screwing the flippers.
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[ucblockhead is] useless and subhuman