FSD-
I have seen that reset chart alot. I constantly wonder how much of that is second’s, already sold, or flips; which will reduce the overall pain of resets.
I actually agree with you on the rests to the Neg Am. This in my mind is the thing that will get the CV/RSF’s, much more than subprime. The thing is, those people are also the ones with the best income growth right now. If they over extended themselves 10% or so, and have 5 years to make up for it, they will likely be ok. Add in that they will prob. be able to caugh up some money to grease the refi wheels so to speak and alot more of them will be ok. Prime borrowers are not subprime borrowers, to expect them to make or even have only the choices that a subprime does is incorrect. That doesnt mean that reset wont hurt, or that only prime borrowers bought in the nicer areas.