JWM in SD
Oh yeah, and here is the money quote from old Ben:
“A recent estimate based on subprime mortgages foreclosed in the fourth quarter of 2007 indicated that total losses exceeded 50 percent of the principal balance, with legal, sales, and maintenance expenses alone amounting to more than 10 percent of principal. With the time period between the last mortgage payment and REO liquidation lengthening in recent months, this loss rate will likely grow even larger. Moreover, as the time to liquidation increases, the uncertainty about the losses increases as well.”
50%……50%. You really still think that areas like Carmel Valley and 4S and RSF are going to weather this storm??? Wait until the second wave or resets hit and we all become “SUBPRIME”.
