Go Fly a Kite (Home)
You see, many folks were putting down deposits between $30,000 and $50,000 for homes 18-months before they were completed.
Folks would buy homes for $225,000 and when the price went up to $350,000 they would get a second mortgage on the new increased equity and go put that money down on two or three new homes or two or three older homes and wait for them to go up.
House Flipping was in full-swing, and folks were making lots of money on these deals too, some house flippers which had anywhere from 5 to 10 homes in the flipping sequence at any one time made millions.
Others saw this and joined in, meanwhile mortgage brokers had steady clientele, writing any deal that the house flipping speculators came up with.
They would meet a Starbucks, sign the loan documents and they owned another home, it was that easy.
When the market started to crash, it went down hard, Las Vegas area was the foreclosure capital of the World, some 75 homes a day were hitting the foreclosure lists, each and every day a steady stream.
Homebuilders also had signed contracts and down payments, and they kept building even as things were crashing, trying to move that inventory before complete collapse.
With 7,000 people moving into the area each month, they figured at least they had some buyers, even if all the speculators defaulted and lost their deposits, there were waiting lists.
Of course, those waiting lists dried up too.
The speculators were kiting homes, just like those who fraudulently "kite" checks; writing a check to one account and then one to a third account and then from the third back to the first, each time for more money and spending the float; money they didn't have.
That's what the speculators were doing and everyone knew it and let this happen for commissions and profit themselves.
As long as things kept going up, everyone made money, but guess what?
What goes up must come down, even house kites"