60 Minutes – 2nd Wave – Option ARMS+ALT As

[peterb]

Mr Mortgage has been saying this for at least a few months now.

[Eugene]

I did a simple study of option ARMs for my blog a week ago. Main findings were, 1) option ARMs appear to be the cause of 25% to 30% of all foreclosures that occurred the last 6 months, 2) they are overrepresented in the South Bay. In 91914 (the upscale corner of Eastlake), the percentage of option ARM induced foreclosures is close to 50%. (That explains how we came to have a pocket of million-dollar houses in the area so far away from any high-tech employment.)

Numbers seem to suggest that option ARM holders are defaulting en masse long before the final reset.

Of course, that only tells us about ARMs that already went delinquent. There could be a big chunk of sleeper option ARMs in Carmel Valley. But those must be still paying. In all of 92130, I only see 9 trustee sales since July that have negative-amortization characteristics.

[Eugene]

I did a simple study of option ARMs for my blog a week ago. Main findings were, 1) option ARMs appear to be the cause of 25% to 30% of all foreclosures that occurred the last 6 months, 2) they are overrepresented in the South Bay. In 91914 (the upscale corner of Eastlake), the percentage of option ARM induced foreclosures is close to 50%. (That explains how we came to have a pocket of million-dollar houses in the area so far away from any high-tech employment.)

Numbers seem to suggest that option ARM holders are defaulting en masse long before the final reset.

Of course, that only tells us about ARMs that already went delinquent. There could be a big chunk of sleeper option ARMs in Carmel Valley. But those must be still paying. In all of 92130, I only see 9 trustee sales since July that have negative-amortization characteristics.

[Eugene]

I did a simple study of option ARMs for my blog a week ago. Main findings were, 1) option ARMs appear to be the cause of 25% to 30% of all foreclosures that occurred the last 6 months, 2) they are overrepresented in the South Bay. In 91914 (the upscale corner of Eastlake), the percentage of option ARM induced foreclosures is close to 50%. (That explains how we came to have a pocket of million-dollar houses in the area so far away from any high-tech employment.)

Numbers seem to suggest that option ARM holders are defaulting en masse long before the final reset.

Of course, that only tells us about ARMs that already went delinquent. There could be a big chunk of sleeper option ARMs in Carmel Valley. But those must be still paying. In all of 92130, I only see 9 trustee sales since July that have negative-amortization characteristics.

[Eugene]

I did a simple study of option ARMs for my blog a week ago. Main findings were, 1) option ARMs appear to be the cause of 25% to 30% of all foreclosures that occurred the last 6 months, 2) they are overrepresented in the South Bay. In 91914 (the upscale corner of Eastlake), the percentage of option ARM induced foreclosures is close to 50%. (That explains how we came to have a pocket of million-dollar houses in the area so far away from any high-tech employment.)

Numbers seem to suggest that option ARM holders are defaulting en masse long before the final reset.

Of course, that only tells us about ARMs that already went delinquent. There could be a big chunk of sleeper option ARMs in Carmel Valley. But those must be still paying. In all of 92130, I only see 9 trustee sales since July that have negative-amortization characteristics.

[Eugene]

I did a simple study of option ARMs for my blog a week ago. Main findings were, 1) option ARMs appear to be the cause of 25% to 30% of all foreclosures that occurred the last 6 months, 2) they are overrepresented in the South Bay. In 91914 (the upscale corner of Eastlake), the percentage of option ARM induced foreclosures is close to 50%. (That explains how we came to have a pocket of million-dollar houses in the area so far away from any high-tech employment.)

Numbers seem to suggest that option ARM holders are defaulting en masse long before the final reset.

Of course, that only tells us about ARMs that already went delinquent. There could be a big chunk of sleeper option ARMs in Carmel Valley. But those must be still paying. In all of 92130, I only see 9 trustee sales since July that have negative-amortization characteristics.

[Arraya]

http://www.usatoday.com/money/economy/housing/2008-12-14-unemployment-default-foreclosures_N.htm

Unemployment is now the cause of almost half of all foreclosures on conventional mortgages, raising concerns that mounting joblessness will stall any housing recovery and could cause more foreclosures next year.

The increase in unemployment as a cause is a significant shift from 2007, when foreclosures were primarily driven by the large number of homeowners who had taken on risky loans. Many were first-time home buyers or those who bought during the housing boom that ended in 2006.

Now, layoffs and the recession are playing the pivotal role in driving mortgage defaults. The 4.3 million people collecting unemployment is the most since 1974, the Labor Department says.

[Arraya]

http://www.usatoday.com/money/economy/housing/2008-12-14-unemployment-default-foreclosures_N.htm

Unemployment is now the cause of almost half of all foreclosures on conventional mortgages, raising concerns that mounting joblessness will stall any housing recovery and could cause more foreclosures next year.

The increase in unemployment as a cause is a significant shift from 2007, when foreclosures were primarily driven by the large number of homeowners who had taken on risky loans. Many were first-time home buyers or those who bought during the housing boom that ended in 2006.

Now, layoffs and the recession are playing the pivotal role in driving mortgage defaults. The 4.3 million people collecting unemployment is the most since 1974, the Labor Department says.

[Arraya]

http://www.usatoday.com/money/economy/housing/2008-12-14-unemployment-default-foreclosures_N.htm

Unemployment is now the cause of almost half of all foreclosures on conventional mortgages, raising concerns that mounting joblessness will stall any housing recovery and could cause more foreclosures next year.

The increase in unemployment as a cause is a significant shift from 2007, when foreclosures were primarily driven by the large number of homeowners who had taken on risky loans. Many were first-time home buyers or those who bought during the housing boom that ended in 2006.

Now, layoffs and the recession are playing the pivotal role in driving mortgage defaults. The 4.3 million people collecting unemployment is the most since 1974, the Labor Department says.

[Arraya]

http://www.usatoday.com/money/economy/housing/2008-12-14-unemployment-default-foreclosures_N.htm

Unemployment is now the cause of almost half of all foreclosures on conventional mortgages, raising concerns that mounting joblessness will stall any housing recovery and could cause more foreclosures next year.

The increase in unemployment as a cause is a significant shift from 2007, when foreclosures were primarily driven by the large number of homeowners who had taken on risky loans. Many were first-time home buyers or those who bought during the housing boom that ended in 2006.

Now, layoffs and the recession are playing the pivotal role in driving mortgage defaults. The 4.3 million people collecting unemployment is the most since 1974, the Labor Department says.

[Arraya]

http://www.usatoday.com/money/economy/housing/2008-12-14-unemployment-default-foreclosures_N.htm

Unemployment is now the cause of almost half of all foreclosures on conventional mortgages, raising concerns that mounting joblessness will stall any housing recovery and could cause more foreclosures next year.

The increase in unemployment as a cause is a significant shift from 2007, when foreclosures were primarily driven by the large number of homeowners who had taken on risky loans. Many were first-time home buyers or those who bought during the housing boom that ended in 2006.

Now, layoffs and the recession are playing the pivotal role in driving mortgage defaults. The 4.3 million people collecting unemployment is the most since 1974, the Labor Department says.

[cr]

So much for a 2009 turn-around.

[cr]

So much for a 2009 turn-around.

[cr]

So much for a 2009 turn-around.

[cr]

So much for a 2009 turn-around.

[Author]

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