The plan was to package the mortgages into neat tidy bundles and sell them to the investment markets for long term return in pensions and so forth.
The problem was that bundled mortgages contained lots of defective mortgages where the borrowers were not even close to being qualified.
Add in the collapse of the housing bubble and that is why we are in the mess today.
The best way for the housing way to rise again is if rents take off. Apartment rents of around $2,000 plus would really jump start the market.
But lots of these renters lost their homes because they could not pay. How will they qualify for a new home now with a bad credit rating? I hear foreigners are mostly buying the value homes because they do quality.
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