davelj, I don’t gamble with strangers over the internet.
I was reading anotherf&ckedborrower.blogspot.com last fall, before I even sold my house. His insider views of mortgage lending led me to see how bad this is going to be, so I realized already last year that we would have high rates of foreclosure.
Here’s a sample of what I was reading last November: “I think a squeeze is coming that will affect the entire banking system. The madness of bankers has become unprecedented. They have forgotten about loan diversification. They have been caught up in Greenspan’s counter-cyclical policy of lowering the federal funds rate. Now this policy is being reversed. Rates are climbing. This will contract the loan market. Banks will wind up sitting on top of bad loans of all kinds because the American economy is now housing-sale driven.
You may think that you are shielded. But your banker is not shielded. You may not deal with bankers. But your employer does.
Your employer had better have a signed line of credit to keep the doors open. Without this, there may not be money to borrow when the housing bubble pops.
There will be great opportunities to buy houses at discounts during the down phase of the cycle. Be patient.”
Just read his articles, – it is just amazing.
— Monday morning update – Just read this from Mish’s site from a mortgage broker in Orange County, talking about subprime borrowers:
“What people don’t see, the NAR in particular, is the upcoming train wreck. I am talking about all the sub prime loans for refinances as well as purchases that were taken out 2 to 3 yrs ago and are now all coming due to reset….Ninety percent of those who take an interest only loan can only afford the interest only part and not only that, there entire lifestyles are planned around that payment…. “
