Home › Forums › Housing › CNN — Rate freeze plan for ARMs gains traction. How will this affect the market if this goes thru?
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NeetaT.
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December 1, 2007 at 4:33 PM #11042December 1, 2007 at 4:42 PM #106790
Ash Housewares
ParticipantIt means less must-sell inventory, so the price decline may slow down. The price decline will not stop, however. Buyers still need financing, and without exotic mortgages they can’t pay pie-in-the-sky prices.
December 1, 2007 at 4:42 PM #106885ParticipantIt means less must-sell inventory, so the price decline may slow down. The price decline will not stop, however. Buyers still need financing, and without exotic mortgages they can’t pay pie-in-the-sky prices.
December 1, 2007 at 4:42 PM #106919ParticipantIt means less must-sell inventory, so the price decline may slow down. The price decline will not stop, however. Buyers still need financing, and without exotic mortgages they can’t pay pie-in-the-sky prices.
December 1, 2007 at 4:42 PM #106925ParticipantIt means less must-sell inventory, so the price decline may slow down. The price decline will not stop, however. Buyers still need financing, and without exotic mortgages they can’t pay pie-in-the-sky prices.
December 1, 2007 at 4:42 PM #106947ParticipantIt means less must-sell inventory, so the price decline may slow down. The price decline will not stop, however. Buyers still need financing, and without exotic mortgages they can’t pay pie-in-the-sky prices.
December 1, 2007 at 4:43 PM #106802patientlywaiting
ParticipantNo way the banks will agree to take a bath.
My guess is that the lenders will tack on the “earned” but uncollected interest to the back of the loan effectively turning those mortgages into negative amortization loans.
That will only delay the blood-bath. The borrowers would be stupid to agree to such a deal.
Anyway, let’s wait and see what the details are.
December 1, 2007 at 4:43 PM #106898ParticipantNo way the banks will agree to take a bath.
My guess is that the lenders will tack on the “earned” but uncollected interest to the back of the loan effectively turning those mortgages into negative amortization loans.
That will only delay the blood-bath. The borrowers would be stupid to agree to such a deal.
Anyway, let’s wait and see what the details are.
December 1, 2007 at 4:43 PM #106929ParticipantNo way the banks will agree to take a bath.
My guess is that the lenders will tack on the “earned” but uncollected interest to the back of the loan effectively turning those mortgages into negative amortization loans.
That will only delay the blood-bath. The borrowers would be stupid to agree to such a deal.
Anyway, let’s wait and see what the details are.
December 1, 2007 at 4:43 PM #106935ParticipantNo way the banks will agree to take a bath.
My guess is that the lenders will tack on the “earned” but uncollected interest to the back of the loan effectively turning those mortgages into negative amortization loans.
That will only delay the blood-bath. The borrowers would be stupid to agree to such a deal.
Anyway, let’s wait and see what the details are.
December 1, 2007 at 4:43 PM #106957ParticipantNo way the banks will agree to take a bath.
My guess is that the lenders will tack on the “earned” but uncollected interest to the back of the loan effectively turning those mortgages into negative amortization loans.
That will only delay the blood-bath. The borrowers would be stupid to agree to such a deal.
Anyway, let’s wait and see what the details are.
December 1, 2007 at 5:01 PM #106811blackbox
ParticipantDitto on first comment, but remember this is an ideal result of the plan. When have government sponsor plans ever really work out as planned? The best case result would be that the price declines slow to a reasonable rate until the historical income/home price ratio hits (Most likely over shoot). I believe San Diegos is 37.5 %.
There maybe a dead cat bounce for a bit after this plan is formally announced and spread among all the media outlets, but I really believe nothing will stop the price correction from taking place after such a huge upward price spike that lacked any fundamentals at all.December 1, 2007 at 5:01 PM #106907ParticipantDitto on first comment, but remember this is an ideal result of the plan. When have government sponsor plans ever really work out as planned? The best case result would be that the price declines slow to a reasonable rate until the historical income/home price ratio hits (Most likely over shoot). I believe San Diegos is 37.5 %.
There maybe a dead cat bounce for a bit after this plan is formally announced and spread among all the media outlets, but I really believe nothing will stop the price correction from taking place after such a huge upward price spike that lacked any fundamentals at all.December 1, 2007 at 5:01 PM #106939ParticipantDitto on first comment, but remember this is an ideal result of the plan. When have government sponsor plans ever really work out as planned? The best case result would be that the price declines slow to a reasonable rate until the historical income/home price ratio hits (Most likely over shoot). I believe San Diegos is 37.5 %.
There maybe a dead cat bounce for a bit after this plan is formally announced and spread among all the media outlets, but I really believe nothing will stop the price correction from taking place after such a huge upward price spike that lacked any fundamentals at all.December 1, 2007 at 5:01 PM #106945ParticipantDitto on first comment, but remember this is an ideal result of the plan. When have government sponsor plans ever really work out as planned? The best case result would be that the price declines slow to a reasonable rate until the historical income/home price ratio hits (Most likely over shoot). I believe San Diegos is 37.5 %.
There maybe a dead cat bounce for a bit after this plan is formally announced and spread among all the media outlets, but I really believe nothing will stop the price correction from taking place after such a huge upward price spike that lacked any fundamentals at all. -
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