- This topic has 65 replies, 11 voices, and was last updated 16 years, 11 months ago by
Navydoc.
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March 4, 2008 at 9:05 AM #164209March 4, 2008 at 9:08 AM #164214
Navydoc
Participant“These are not subprime”
Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
March 4, 2008 at 9:08 AM #164296Navydoc
Participant“These are not subprime”
Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
March 4, 2008 at 9:08 AM #164192Navydoc
Participant“These are not subprime”
Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
March 4, 2008 at 9:08 AM #164205Navydoc
Participant“These are not subprime”
Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
March 4, 2008 at 9:08 AM #163882Navydoc
Participant“These are not subprime”
Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
March 4, 2008 at 10:02 AM #164341patientlywaiting
ParticipantCombine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
Those with patience will be amply rewarded.
March 4, 2008 at 10:02 AM #163927patientlywaiting
ParticipantCombine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
Those with patience will be amply rewarded.
March 4, 2008 at 10:02 AM #164257patientlywaiting
ParticipantCombine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
Those with patience will be amply rewarded.
March 4, 2008 at 10:02 AM #164238patientlywaiting
ParticipantCombine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
Those with patience will be amply rewarded.
March 4, 2008 at 10:02 AM #164250patientlywaiting
ParticipantCombine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
Those with patience will be amply rewarded.
March 4, 2008 at 10:12 AM #164265Coronita
ParticipantThese are not subprime"
Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
March 4, 2008 at 10:12 AM #164253Coronita
ParticipantThese are not subprime"
Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
March 4, 2008 at 10:12 AM #164356Coronita
ParticipantThese are not subprime"
Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
March 4, 2008 at 10:12 AM #164272Coronita
ParticipantThese are not subprime"
Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.
It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
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