[quote=temeculaguy]What happens after this wave? There’s no talk about another wave beyond this one. [/quote]
An economist in the Kansas City said this Thursday that a second grueling wave of the house foreclosure is perched to hit as the subprime mortgage chaos recedes.
Senior economist of the Federal Research Bank of Kansas City, Kelly Edmiston crashed that unwanted prediction at the Fed’s Money Smart program.
“I don’t expect the foreclosure problem to get much better in the next couple of years. In fact, it may well get worse,” Edmiston told.
Subprime mortgages stimulated their personal foreclosure catastrophe before because their expenses naturally rearrange after two years rather than five.
The Next Wave Of Foreclosures
Maurna Desmond, 04.22.09, 12:01 AM EDT
Falling home prices and rising unemployment are set to spread the pain.
Moody’s estimates that if the Obama administration’s two-pronged anti-foreclosure effort gets going, there will still be more than 5 million foreclosures over the next three years. “At the moment, that feels optimistic to me,” Zandi says.
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Coming Wave of Resets – Is there a Simple Answer?
According to an article written last week by Eric Uhlfelder, Credit Suisse maintains that about $1 trillion in Alt-A and option payment mortgages are scheduled to have rate resets in the next 30 months. These resets, the bank says, could cause as much future damage as the subprime crisis has already inflicted.
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4-10 Forward Look at Defaults, Foreclosures, Banks and Housing
Saturday, April 11th, 2009 | By Mr. Mortgage
But coming down the pipe is a massive wave of mortgage Notice-of-Defaults (NOD)that dwarfs the highs we saw when things began to get really out of control in Q1 2008.
