Heh, that’s right borrowers, that debt (HELOC, refi with cash, over 100% LTV loan, “leverage” for your hedge fund, margins) eventually has to be paid back. So, paying back debt with other debt, e.g. transferring it to another credit card with a lower APR, or issuing bonds, just postpones the inevitable.
Inevitable seems to be arriving sooner than expected. (It always does.)
Oh I Bet They’re Quality Homes
In the rush to build new homes to keep up with the pace of artificial (bubble) demand, it is well known (and one would be naive to not presume) homebuilders have cut corners, increased unskilled and reduced skilled workers, and inflated profits at everyone else’s expense.
This is of course nothing new. The quality of new construction is quite poor in just about anything built after 1975. Even McMansions suffer. Sometimes they’re so big, it isn’t as easy to spot the failures, but they are there.
This lovely woman and her neighbor bought in a Pulte (spit) built subdivision in Kansas, and have well documented their travails after having done so.
Good luck to them, they’re going to need it.