Home › Forums › Housing › How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!?
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peterb.
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AuthorPosts
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February 10, 2008 at 12:05 AM #11774February 10, 2008 at 6:52 AM #150660
kewp
ParticipantWe are all trying to figure out how to short *prime* mortgages now! Shhh….
February 10, 2008 at 6:52 AM #150920kewp
ParticipantWe are all trying to figure out how to short *prime* mortgages now! Shhh….
February 10, 2008 at 6:52 AM #150931kewp
ParticipantWe are all trying to figure out how to short *prime* mortgages now! Shhh….
February 10, 2008 at 6:52 AM #150947kewp
ParticipantWe are all trying to figure out how to short *prime* mortgages now! Shhh….
February 10, 2008 at 6:52 AM #151020kewp
ParticipantWe are all trying to figure out how to short *prime* mortgages now! Shhh….
February 10, 2008 at 7:31 AM #150670Bubblesitter
ParticipantOption-ARMS are the next elephant in the room that will be getting lots of press soon.
This “creative” financing scheme was once limited to higher net worth, primariliy independent business owners and consultants who had high seasonality in their incomes. It morphed during the bubble years as a widespread financing option.
They have an interesting features, if you continue to choose the lower payment option and your mortgage balance reaches a preset limit (say 5% larger than your original balance) your ARM resets early. Who reads all the fine print in these exotic mortgages and really understands them?
I bet a large # of those folks have negative equity, they will be walking away in droves.
By the way, on the ARM reset chart, what is the typical lag between ARM reset and eventual foreclosure? 6 months? By shifting this graph to the right you see that the peak of the foreclosure tidal wave is still ahead.
Bubblesitter
February 10, 2008 at 7:31 AM #150928Bubblesitter
ParticipantOption-ARMS are the next elephant in the room that will be getting lots of press soon.
This “creative” financing scheme was once limited to higher net worth, primariliy independent business owners and consultants who had high seasonality in their incomes. It morphed during the bubble years as a widespread financing option.
They have an interesting features, if you continue to choose the lower payment option and your mortgage balance reaches a preset limit (say 5% larger than your original balance) your ARM resets early. Who reads all the fine print in these exotic mortgages and really understands them?
I bet a large # of those folks have negative equity, they will be walking away in droves.
By the way, on the ARM reset chart, what is the typical lag between ARM reset and eventual foreclosure? 6 months? By shifting this graph to the right you see that the peak of the foreclosure tidal wave is still ahead.
Bubblesitter
February 10, 2008 at 7:31 AM #150940Bubblesitter
ParticipantOption-ARMS are the next elephant in the room that will be getting lots of press soon.
This “creative” financing scheme was once limited to higher net worth, primariliy independent business owners and consultants who had high seasonality in their incomes. It morphed during the bubble years as a widespread financing option.
They have an interesting features, if you continue to choose the lower payment option and your mortgage balance reaches a preset limit (say 5% larger than your original balance) your ARM resets early. Who reads all the fine print in these exotic mortgages and really understands them?
I bet a large # of those folks have negative equity, they will be walking away in droves.
By the way, on the ARM reset chart, what is the typical lag between ARM reset and eventual foreclosure? 6 months? By shifting this graph to the right you see that the peak of the foreclosure tidal wave is still ahead.
Bubblesitter
February 10, 2008 at 7:31 AM #150957Bubblesitter
ParticipantOption-ARMS are the next elephant in the room that will be getting lots of press soon.
This “creative” financing scheme was once limited to higher net worth, primariliy independent business owners and consultants who had high seasonality in their incomes. It morphed during the bubble years as a widespread financing option.
They have an interesting features, if you continue to choose the lower payment option and your mortgage balance reaches a preset limit (say 5% larger than your original balance) your ARM resets early. Who reads all the fine print in these exotic mortgages and really understands them?
I bet a large # of those folks have negative equity, they will be walking away in droves.
By the way, on the ARM reset chart, what is the typical lag between ARM reset and eventual foreclosure? 6 months? By shifting this graph to the right you see that the peak of the foreclosure tidal wave is still ahead.
Bubblesitter
February 10, 2008 at 7:31 AM #151028Bubblesitter
ParticipantOption-ARMS are the next elephant in the room that will be getting lots of press soon.
This “creative” financing scheme was once limited to higher net worth, primariliy independent business owners and consultants who had high seasonality in their incomes. It morphed during the bubble years as a widespread financing option.
They have an interesting features, if you continue to choose the lower payment option and your mortgage balance reaches a preset limit (say 5% larger than your original balance) your ARM resets early. Who reads all the fine print in these exotic mortgages and really understands them?
I bet a large # of those folks have negative equity, they will be walking away in droves.
By the way, on the ARM reset chart, what is the typical lag between ARM reset and eventual foreclosure? 6 months? By shifting this graph to the right you see that the peak of the foreclosure tidal wave is still ahead.
Bubblesitter
February 10, 2008 at 7:37 AM #150675kewp
ParticipantIn all seriousness, you are hearing talk of the 2nd wave of mortgage resets. It’s all the ‘walk away’ talk.
Unless there is some serious cram-down action 100% of these loans are going to fail.
February 10, 2008 at 7:37 AM #150933kewp
ParticipantIn all seriousness, you are hearing talk of the 2nd wave of mortgage resets. It’s all the ‘walk away’ talk.
Unless there is some serious cram-down action 100% of these loans are going to fail.
February 10, 2008 at 7:37 AM #150943kewp
ParticipantIn all seriousness, you are hearing talk of the 2nd wave of mortgage resets. It’s all the ‘walk away’ talk.
Unless there is some serious cram-down action 100% of these loans are going to fail.
February 10, 2008 at 7:37 AM #150961kewp
ParticipantIn all seriousness, you are hearing talk of the 2nd wave of mortgage resets. It’s all the ‘walk away’ talk.
Unless there is some serious cram-down action 100% of these loans are going to fail.
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