That is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
