Home › Forums › Housing › How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!?
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February 10, 2008 at 7:37 AM #151033February 10, 2008 at 7:48 AM #150690nostradamusParticipantFebruary 10, 2008 at 7:48 AM #150950nostradamusParticipantFebruary 10, 2008 at 7:48 AM #150959nostradamusParticipantFebruary 10, 2008 at 7:48 AM #150977nostradamusParticipantFebruary 10, 2008 at 7:48 AM #151048nostradamusParticipantFebruary 10, 2008 at 7:54 AM #150695BubblesitterParticipant
Never 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 #150955BubblesitterParticipantNever 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 #150964BubblesitterParticipantNever 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 #150982BubblesitterParticipantNever 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 #151053BubblesitterParticipantNever 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 #150700jpinpbParticipantThat 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 #150960jpinpbParticipantThat 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 #150968jpinpbParticipantThat 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 #150987jpinpbParticipantThat 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.
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