As a renter, I have heard from time to time that pricer neighborhoods like Carmel Valley and Del Mar have thus far resisted the larger price drops that have already occured in places like Chula Vista or Escondido, albeit they have taken small drops.
I have heard that one of the reasons is that there is a high prevalence rate of option-ARM loans where folks don’t have to pay all their interest each month which will, in turn, cause the principal to grow and grow until they hit some set point above the original principal at which point, homeowners need to start paying down the principal as well as the interest.
My question is does anyone have any hard data (well educated guesses are also welcome) on how saturated these neighborhoods (ie what percentage of loans) are with these types of risky loans and what a timeline of the “reset” to higher monthly payments might look like and when they might pop up as short sales, defaults or foreclosures?
I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…
I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…
I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…
I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…
I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…
[quote=meadandale]I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…[/quote]
The guy is a genius, because he will probably get to to have his loan modified, unlike if he actually put down 20% and did a 30year fixed 🙁
[quote=meadandale]I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…[/quote]
The guy is a genius, because he will probably get to to have his loan modified, unlike if he actually put down 20% and did a 30year fixed 🙁
[quote=meadandale]I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…[/quote]
The guy is a genius, because he will probably get to to have his loan modified, unlike if he actually put down 20% and did a 30year fixed 🙁
[quote=meadandale]I do know that a friend of mine who bought a house in 4$ last fall for $700k bought it using an interest only ARM. And at one time I thought he was a smart guy…[/quote]
The guy is a genius, because he will probably get to to have his loan modified, unlike if he actually put down 20% and did a 30year fixed 🙁
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