Home › Forums › Housing › How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!?
- This topic has 155 replies, 19 voices, and was last updated 15 years, 4 months ago by
peterb.
-
AuthorPosts
-
February 10, 2008 at 7:37 AM #151033February 10, 2008 at 7:48 AM #150690
nostradamus
ParticipantFebruary 10, 2008 at 7:48 AM #150950nostradamus
ParticipantFebruary 10, 2008 at 7:48 AM #150959nostradamus
ParticipantFebruary 10, 2008 at 7:48 AM #150977nostradamus
ParticipantFebruary 10, 2008 at 7:48 AM #151048nostradamus
ParticipantFebruary 10, 2008 at 7:54 AM #150695Bubblesitter
ParticipantNever thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
Bubblesitter
February 10, 2008 at 7:54 AM #150955Bubblesitter
ParticipantNever thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
Bubblesitter
February 10, 2008 at 7:54 AM #150964Bubblesitter
ParticipantNever thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
Bubblesitter
February 10, 2008 at 7:54 AM #150982Bubblesitter
ParticipantNever thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
Bubblesitter
February 10, 2008 at 7:54 AM #151053Bubblesitter
ParticipantNever thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
Bubblesitter
February 10, 2008 at 8:05 AM #150700jpinpb
ParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
February 10, 2008 at 8:05 AM #150960jpinpb
ParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
February 10, 2008 at 8:05 AM #150968jpinpb
ParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
February 10, 2008 at 8:05 AM #150987jpinpb
ParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
-
AuthorPosts
- You must be logged in to reply to this topic.