"ALL ABOARD" Elevator going DOWN

"We in a heap of trouble Willis"

Instead, these buyers use "piggyback" mortgages. Piggybacks consist of two loans, a regular mortgage, which covers the first 80 percent of the home cost, and a home equity loan or home equity line of credit, which pays for the rest.
SMR reports that piggybacks now account for 48.2 percent of all home purchase mortgage dollars, a stunning rise from 19.9 percent in 2001.
The use of so much leverage makes real estate markets increasingly risky, because lack of home equity gives people one less asset to fall back on in times of need.

**So add to that what we have been talking about, over 30% of homes sold are 2nd homes or for pure speculation.

Everyone is ALL aboard the housing train, now time to run it off the tracks.

D