Comments on: The Bubble http://www.brewedfreshdaily.com/2008/the-bubble Locally owned and operated from Cleveland, OH since 2002 Fri, 09 Dec 2011 22:07:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carole Cohen http://www.brewedfreshdaily.com/2008/the-bubble/comment-page-1#comment-670 Carole Cohen Wed, 18 Jun 2008 02:17:28 +0000 http://www.brewedfreshdaily.com/?p=74#comment-670 One thing took me a while to understand. Maybe more apparent to the rest of you, but just in case. In places where there was a bubble, I wondered how appraisals ever got approved? Here, you have to be within 1% or so of the market value in a neighborhood for a comparable home. I'm still not convinced I get it, but I do understand one thing. People got approved for say a $400k loan but offered $450 and paid the difference in cash. Somehow the appraisal only 'counts' on the mortgaged part. Using this theory, you can put in 100k over what any other home on the market has sold for as long as your mortgage is for an amount that matches the market. I still don't get it, why someone would be willing to spend 100k or more than any other home with like value has been worth. It was truly a gold rush mentality, all the way around no? One thing took me a while to understand. Maybe more apparent to the rest of you, but just in case. In places where there was a bubble, I wondered how appraisals ever got approved? Here, you have to be within 1% or so of the market value in a neighborhood for a comparable home. I’m still not convinced I get it, but I do understand one thing. People got approved for say a $400k loan but offered $450 and paid the difference in cash. Somehow the appraisal only ‘counts’ on the mortgaged part. Using this theory, you can put in 100k over what any other home on the market has sold for as long as your mortgage is for an amount that matches the market.

I still don’t get it, why someone would be willing to spend 100k or more than any other home with like value has been worth. It was truly a gold rush mentality, all the way around no?

]]> By: Dee Wood http://www.brewedfreshdaily.com/2008/the-bubble/comment-page-1#comment-532 Dee Wood Sun, 15 Jun 2008 23:48:13 +0000 http://www.brewedfreshdaily.com/?p=74#comment-532 This article on "The Bubble" is truly one of the finest I've read in explanation of HOW it happened. My congratulations to the writers!! You've done a superb job!! Dee Wood This article on “The Bubble” is truly one of the finest I’ve read in explanation of HOW it happened.
My congratulations to the writers!! You’ve done a superb job!!
Dee Wood

]]>