“Most of the upcoming resets —- roughly 177,000 of them —- will hit “Alt-A” loans, typically given to higher-income borrowers who purchased multiple properties or used “stated income,” meaning they wrote down an income rather than provide a pay stub.
One of those borrowers is Diane Goodwin of Oceanside. She purchased four investment properties. Including her own house, she has five “Alt-A” loans.”
I know someone like this. They own 5 “investment” properties and have been talking foreclosure for a year and a half. One of the properties finally popped up on RealtyTrac (RT) as going to auction.
So what do we call this inventory? We know of the shadow inventory which is REOs owned by banks but not for sale. We can go to RT and see what’s documented to be in foreclosure now.
But what of the massive amounts of homes that the mortgages are not being paid on but the banks have not initiated foreclosure proceedings? Without the banks initiating foreclosure no foreclosure tracking programs will pick it up.
