Posted by JMS/.MN on February 04, 2012 at 18:57:33 from (209.237.107.155):
In Reply to: Land prices? posted by WJD on February 04, 2012 at 17:58:33:
There"s a big difference between now and the 80s. Primary thing is lenders are not making loans based just on collateral. Buyer needs a substantial amount down, and adequate cash flow to make the payments, plus a cushion. Not the risky loans of before. Why did the housing bubble burst? Homes sold with nothing down, unverified income, improvements financed by equity. With 20% down, the buyer has more incentive to live within means to make payments.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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