I again kindly request data on which jobs in San Diego are going up 50% in the next 3 years. Please name the occupation, and how many of those jobs currently exist. Until then, I think most people with exotic loans will default.
Just think about it – people whose loans reset in beginning of ’08 and can’t make their payments, won’t see their NODs until next summer! We are already down 10% on many homes, and some are back to 2004 pricing. What will happen next summer, when we get the first wave of thousands of NODs?
I did an analysis of the impact of ARMs on CA in another thread. CA and FL had the highest ARM useage in the country.
The question is: how many people with ARMs can handle the 30% – 70% increase in payments when their loans resets? I have yet to get any statistics on how many jobs in San Diego have that kind of quick pay increase. It doesn’t matter how MUCH the job pays, but how much the pay INCREASES.
I don’t recall saying EVERY ARM holder will default, just that MOST will do so. I think that makes me gray 🙂
