now keep in mind that once a loan reset, and the homeowners decide to default, it is another 6-9 months to get the home to REO listing.
you see that first peak in late 2007? those resets will come to fruition in mid 2008! which means all the gloom and doom right now is just the run up, the effect of that late 2007 reset hasn’t even hit us yet.
and you see how the larger peak actually occur in mid to late 2008?
so REO inventory build up will be tramendous starting in mid-08 and build up well into ’09. and then in 2010 and 2011 the negative amortized loans start resetting too. that’s why the true bottom is 2010 and 2011.
