Forclosure Future
I live out in California, and although I maybe THE newbie, I see a lot of forclosure in the furture, perhapes a bit of a "bubble popping". I hear of people buying home on power loans in hopes to flip. I forsee a whole bunch of people oweing more and more on thier mortgages and being stuck. A lot of opportunity in the near future 
[addsig]
I agree with you, most people wish for things and when they get them don't know how to handle it. I've seen this happen over and over in the last 17 years of being in financing and the last 16 years of being an investor.
Most people don't have the reserves they need. That seems to be the biggest problem.
Lori
[addsig]
I agree too. The availabilty of money is unbelievable right now and for the last 15 years or so. Home Equity Loans, Lines of credit, credit cards, auto financing, you name it. Everyone grabs it up and unfortunately a lot of people don't have the education or will power to keep it under control. Add that to all the usual problems that have always been there, ie sudden job loss, health ect.... and you've got yourself an entire nation in too much debt.
I believe that you will see a flood of foreclosures in part to the 100 percent home loans that many people took. Real Estate prices skkyrocketed over the last couple of years and yes alot of people may of bought to high and any changes in thier income may force them into foreclosure. Also interest rates are rising so the adjustable rates will hurt the people just getting by. I think it will be an interesting next couple of years.
Of course, buying once the bubble bursts becomes a bit trickier. Anyone can ride the market up--shorting is tougher! But challenges and opportunities are synonyms, right?