71% not paying full interest

[robson]

“As of the end of December, 71 percent of borrowers with pay-option loans were electing to make less than full interest payments.”

I read this to mean that IN DECEMBER, 71% didn’t pay the whole monthly payment. I believe SDEngineer is on the right track, with the subtle difference that the 71% isn’t necessarily repeat offenders, but just a 1 month instance.

The remaining 20% would be people who missed a payment in an earlier month but paid in December. Of course, I would hands down presume that the majority of the 71% who didn’t pay in December are probably repeat offenders.

[Navydoc]

SDEngineer may be on the right track, but I’m much too cynical to believe that. From the folks that I know that have these loans, about 3/4 of them can ONLY afford the neg-am payment. Usually the fully amortized payment is more than they make in a month. How else can you explain the HUGE discrepancy between median income and median home price? (I know SD Realtor, the medium income earner doesn’t buy the median home, but I think the point is still valid)

I’m sure the majority (71%?) of people with these loans were absolutely counting on future appreciation to bail them out.

[Navydoc]

SDEngineer may be on the right track, but I’m much too cynical to believe that. From the folks that I know that have these loans, about 3/4 of them can ONLY afford the neg-am payment. Usually the fully amortized payment is more than they make in a month. How else can you explain the HUGE discrepancy between median income and median home price? (I know SD Realtor, the medium income earner doesn’t buy the median home, but I think the point is still valid)

I’m sure the majority (71%?) of people with these loans were absolutely counting on future appreciation to bail them out.

[Navydoc]

SDEngineer may be on the right track, but I’m much too cynical to believe that. From the folks that I know that have these loans, about 3/4 of them can ONLY afford the neg-am payment. Usually the fully amortized payment is more than they make in a month. How else can you explain the HUGE discrepancy between median income and median home price? (I know SD Realtor, the medium income earner doesn’t buy the median home, but I think the point is still valid)

I’m sure the majority (71%?) of people with these loans were absolutely counting on future appreciation to bail them out.

[Navydoc]

SDEngineer may be on the right track, but I’m much too cynical to believe that. From the folks that I know that have these loans, about 3/4 of them can ONLY afford the neg-am payment. Usually the fully amortized payment is more than they make in a month. How else can you explain the HUGE discrepancy between median income and median home price? (I know SD Realtor, the medium income earner doesn’t buy the median home, but I think the point is still valid)

I’m sure the majority (71%?) of people with these loans were absolutely counting on future appreciation to bail them out.

[Navydoc]

SDEngineer may be on the right track, but I’m much too cynical to believe that. From the folks that I know that have these loans, about 3/4 of them can ONLY afford the neg-am payment. Usually the fully amortized payment is more than they make in a month. How else can you explain the HUGE discrepancy between median income and median home price? (I know SD Realtor, the medium income earner doesn’t buy the median home, but I think the point is still valid)

I’m sure the majority (71%?) of people with these loans were absolutely counting on future appreciation to bail them out.

[Author]

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