Exploding ARM Neutron Bomb

[patientlywaiting]

Only few will be able to refinance once the recession hits and job losses start to percolate through the economy.

Prime ARMs defaults and credit card defaults will be the next two crisis.

Refinancing: Only for the privileged few
Sure, now is a great time to refinance – that is, if you can still qualify. Here is what lenders are looking for.
By Les Christie, CNNMoney.com staff writer
February 8 2008: 10:58 AM EST
http://money.cnn.com/2008/02/08/real_estate/who_can_refi/index.htm?postversion=2008020810

[cr]

I heard the other day there are somewhere in the neighborhood of 5 times as many ARM’s (probably in the “prime” category) set to reset than have so far.

Anyone in/validate that, preferably with numbers? I’ve seen the Credit Suisse Chart, but that thing’s getting old, and I wouldn’t be surprised if a lot of the recent refi’s are adjustable too.

[cr]

I heard the other day there are somewhere in the neighborhood of 5 times as many ARM’s (probably in the “prime” category) set to reset than have so far.

Anyone in/validate that, preferably with numbers? I’ve seen the Credit Suisse Chart, but that thing’s getting old, and I wouldn’t be surprised if a lot of the recent refi’s are adjustable too.

[cr]

I heard the other day there are somewhere in the neighborhood of 5 times as many ARM’s (probably in the “prime” category) set to reset than have so far.

Anyone in/validate that, preferably with numbers? I’ve seen the Credit Suisse Chart, but that thing’s getting old, and I wouldn’t be surprised if a lot of the recent refi’s are adjustable too.

[cr]

I heard the other day there are somewhere in the neighborhood of 5 times as many ARM’s (probably in the “prime” category) set to reset than have so far.

Anyone in/validate that, preferably with numbers? I’ve seen the Credit Suisse Chart, but that thing’s getting old, and I wouldn’t be surprised if a lot of the recent refi’s are adjustable too.

[cr]

I heard the other day there are somewhere in the neighborhood of 5 times as many ARM’s (probably in the “prime” category) set to reset than have so far.

Anyone in/validate that, preferably with numbers? I’ve seen the Credit Suisse Chart, but that thing’s getting old, and I wouldn’t be surprised if a lot of the recent refi’s are adjustable too.

[kewp]

pabloesqobar,

I think you are right. I’ll bet that folks will just sit tight until their payments reset, then just stop paying and wait for the sheriff to kick them out.

Heck, if enough people do this and the banks go under, could they keep the property for free? Would they have to pay property taxes?

[kewp]

pabloesqobar,

I think you are right. I’ll bet that folks will just sit tight until their payments reset, then just stop paying and wait for the sheriff to kick them out.

Heck, if enough people do this and the banks go under, could they keep the property for free? Would they have to pay property taxes?

[kewp]

pabloesqobar,

I think you are right. I’ll bet that folks will just sit tight until their payments reset, then just stop paying and wait for the sheriff to kick them out.

Heck, if enough people do this and the banks go under, could they keep the property for free? Would they have to pay property taxes?

[kewp]

pabloesqobar,

I think you are right. I’ll bet that folks will just sit tight until their payments reset, then just stop paying and wait for the sheriff to kick them out.

Heck, if enough people do this and the banks go under, could they keep the property for free? Would they have to pay property taxes?

[kewp]

pabloesqobar,

I think you are right. I’ll bet that folks will just sit tight until their payments reset, then just stop paying and wait for the sheriff to kick them out.

Heck, if enough people do this and the banks go under, could they keep the property for free? Would they have to pay property taxes?

[Anonymous]

The option ARM loans are going to make sub prime loans look like child’s play. Almost no one in one of those loans stands a chance at keeping their home. Between the neg am. portion added to the initial loan balance, depreciation and a payment that increases over 2x when the loan resets, these folks are SCREWED. As a former wholesale mortgage AE, I don’t recall ever being able to help a borrower get out of the option ARM. If they were lucky enough to have enough equity, the deal died as soon as the borrower heard what their new payment would be. Most people could only afford the minimum payment. That’s how the $300k homes in Chula Vista turned into $1m homes. I chose not to work for a lender that offered the option ARM because it is guaranteed to turn the home owner into a home renter. I didn’t want to go to bed knowing that it would only be a matter of time before the borrower loses their home.

Go to google and type in “map of misery”. It is not pretty for SoCal.

[Anonymous]

The option ARM loans are going to make sub prime loans look like child’s play. Almost no one in one of those loans stands a chance at keeping their home. Between the neg am. portion added to the initial loan balance, depreciation and a payment that increases over 2x when the loan resets, these folks are SCREWED. As a former wholesale mortgage AE, I don’t recall ever being able to help a borrower get out of the option ARM. If they were lucky enough to have enough equity, the deal died as soon as the borrower heard what their new payment would be. Most people could only afford the minimum payment. That’s how the $300k homes in Chula Vista turned into $1m homes. I chose not to work for a lender that offered the option ARM because it is guaranteed to turn the home owner into a home renter. I didn’t want to go to bed knowing that it would only be a matter of time before the borrower loses their home.

Go to google and type in “map of misery”. It is not pretty for SoCal.

[Anonymous]

The option ARM loans are going to make sub prime loans look like child’s play. Almost no one in one of those loans stands a chance at keeping their home. Between the neg am. portion added to the initial loan balance, depreciation and a payment that increases over 2x when the loan resets, these folks are SCREWED. As a former wholesale mortgage AE, I don’t recall ever being able to help a borrower get out of the option ARM. If they were lucky enough to have enough equity, the deal died as soon as the borrower heard what their new payment would be. Most people could only afford the minimum payment. That’s how the $300k homes in Chula Vista turned into $1m homes. I chose not to work for a lender that offered the option ARM because it is guaranteed to turn the home owner into a home renter. I didn’t want to go to bed knowing that it would only be a matter of time before the borrower loses their home.

Go to google and type in “map of misery”. It is not pretty for SoCal.

[Anonymous]

The option ARM loans are going to make sub prime loans look like child’s play. Almost no one in one of those loans stands a chance at keeping their home. Between the neg am. portion added to the initial loan balance, depreciation and a payment that increases over 2x when the loan resets, these folks are SCREWED. As a former wholesale mortgage AE, I don’t recall ever being able to help a borrower get out of the option ARM. If they were lucky enough to have enough equity, the deal died as soon as the borrower heard what their new payment would be. Most people could only afford the minimum payment. That’s how the $300k homes in Chula Vista turned into $1m homes. I chose not to work for a lender that offered the option ARM because it is guaranteed to turn the home owner into a home renter. I didn’t want to go to bed knowing that it would only be a matter of time before the borrower loses their home.

Go to google and type in “map of misery”. It is not pretty for SoCal.

[Author]

Posts