Alt A Not such a problem?

[Bugs]

What’s really going to do all the damage is the dollar amounts of the losses from the Alt-A loans.

When a $400k mortgage goes down those losses have been amounting to (generally) $100k – $150k after consideration of the holding costs, foreclosure costs and costs of resale as REOs. The Alt-A loans were the financing vehicles of choice for all these $600k+ mortgages throughout the new subdivision areas. When they go down the losses will start at $200k each and work their way up.

The other thing that I think will happen is that these markets will be playing catchup with the bottom end. That means the pricing structure will collapse all that much more quickly, thereby running the losses up even faster.

The last time we went through a correction the pricing structure compressed. That meant that there were huge differences between what you got for $250k vs $300k, even though $50k doesn’t sound like a lot of money right now.

Really, how many $500k losses will it take to gut any lender?

[34f3f3f]

I was interested to see Wells Fargo mentioned in the same breath as Wachovia. What’s the story in this?

[34f3f3f]

I was interested to see Wells Fargo mentioned in the same breath as Wachovia. What’s the story in this?

[34f3f3f]

I was interested to see Wells Fargo mentioned in the same breath as Wachovia. What’s the story in this?

[34f3f3f]

I was interested to see Wells Fargo mentioned in the same breath as Wachovia. What’s the story in this?

[34f3f3f]

I was interested to see Wells Fargo mentioned in the same breath as Wachovia. What’s the story in this?

[Nor-LA-SD-guy]

You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.

[Nor-LA-SD-guy]

You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.

[Nor-LA-SD-guy]

You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.

[Nor-LA-SD-guy]

You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.

[Nor-LA-SD-guy]

You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.

[Coronita]

[quote]You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.
[/quote]

Perhaps unemployment hasn’t hit (yet) and people can sort of squeak by for now?

Can someone who was here in 1993 summarize what the local job market was like then? Perhaps that would be an interesting comparison. I wasn’t here and didn’t know the details, though I read and heard a lot of about high(er) unemployment here during that time.

[Coronita]

[quote]You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.
[/quote]

Perhaps unemployment hasn’t hit (yet) and people can sort of squeak by for now?

Can someone who was here in 1993 summarize what the local job market was like then? Perhaps that would be an interesting comparison. I wasn’t here and didn’t know the details, though I read and heard a lot of about high(er) unemployment here during that time.

[Coronita]

[quote]You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.
[/quote]

Perhaps unemployment hasn’t hit (yet) and people can sort of squeak by for now?

Can someone who was here in 1993 summarize what the local job market was like then? Perhaps that would be an interesting comparison. I wasn’t here and didn’t know the details, though I read and heard a lot of about high(er) unemployment here during that time.

[Coronita]

[quote]You would think that you would see a lot more for sale signs up in the high end area’s of SD than I have been able to see if this was going to hit SD hard.

But maybe these guys are just going to ride this to the end, or they are praying for a loan work out (or at least praying anyway).

I guess the last part of this year is going to be interesting to watch.

It’s been fun here in Temecula this last year, looks like you guy’s in SD may be able to join the fun now .

There is nothing like seeing brown lawns and abandon homes to cheer you up in the morning.

needless to say yard maintenance is not a priority when you are in the foreclosure process.
[/quote]

Perhaps unemployment hasn’t hit (yet) and people can sort of squeak by for now?

Can someone who was here in 1993 summarize what the local job market was like then? Perhaps that would be an interesting comparison. I wasn’t here and didn’t know the details, though I read and heard a lot of about high(er) unemployment here during that time.

[Author]

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