Housing won’t hit bottom ’til 2012

[carlsbadworker]

[quote=briansd1]…a new flood of foreclosures and short sales hit the market.[/quote]

Really? My patience is running out.

[permabear]

[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.

[permabear]

[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.

[permabear]

[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.

[permabear]

[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.

[permabear]

[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]

But what is her payment going to reset to?

Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.

I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.

[Anonymous]

I would be curious to hear of a real example of someone with an interest only ARM who will have lower payments when it resets. If someone has an example, could they please share the math? Presumably when your LTV is below some threshold there is an additional payment shock (recast). Certainly anyone who purchased during the bubble with interest only is at least 20% underwater, most likely much more. I assume there is also no re-financing options available in this situation correct?

[Anonymous]

I would be curious to hear of a real example of someone with an interest only ARM who will have lower payments when it resets. If someone has an example, could they please share the math? Presumably when your LTV is below some threshold there is an additional payment shock (recast). Certainly anyone who purchased during the bubble with interest only is at least 20% underwater, most likely much more. I assume there is also no re-financing options available in this situation correct?

[Anonymous]

I would be curious to hear of a real example of someone with an interest only ARM who will have lower payments when it resets. If someone has an example, could they please share the math? Presumably when your LTV is below some threshold there is an additional payment shock (recast). Certainly anyone who purchased during the bubble with interest only is at least 20% underwater, most likely much more. I assume there is also no re-financing options available in this situation correct?

[Anonymous]

I would be curious to hear of a real example of someone with an interest only ARM who will have lower payments when it resets. If someone has an example, could they please share the math? Presumably when your LTV is below some threshold there is an additional payment shock (recast). Certainly anyone who purchased during the bubble with interest only is at least 20% underwater, most likely much more. I assume there is also no re-financing options available in this situation correct?

[Anonymous]

I would be curious to hear of a real example of someone with an interest only ARM who will have lower payments when it resets. If someone has an example, could they please share the math? Presumably when your LTV is below some threshold there is an additional payment shock (recast). Certainly anyone who purchased during the bubble with interest only is at least 20% underwater, most likely much more. I assume there is also no re-financing options available in this situation correct?

[sdrealtor]

My best friend had a 5/1 ARM that reset last year. He doesnt have any equity but isnt underwater either. He makes plenty of money, comes from a wealthy family and has plenty saved so he isnt worried at all. The reduction in his monthly payment was enough to make the monthly payments on his new BMW.

[sdrealtor]

My best friend had a 5/1 ARM that reset last year. He doesnt have any equity but isnt underwater either. He makes plenty of money, comes from a wealthy family and has plenty saved so he isnt worried at all. The reduction in his monthly payment was enough to make the monthly payments on his new BMW.

[sdrealtor]

My best friend had a 5/1 ARM that reset last year. He doesnt have any equity but isnt underwater either. He makes plenty of money, comes from a wealthy family and has plenty saved so he isnt worried at all. The reduction in his monthly payment was enough to make the monthly payments on his new BMW.

[sdrealtor]

My best friend had a 5/1 ARM that reset last year. He doesnt have any equity but isnt underwater either. He makes plenty of money, comes from a wealthy family and has plenty saved so he isnt worried at all. The reduction in his monthly payment was enough to make the monthly payments on his new BMW.

[Author]

Posts