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sd_matt.
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December 11, 2009 at 3:24 AM #493810December 11, 2009 at 6:43 AM #492941
j
ParticipantI believe that the data for Option ARMs is fixed. Banks that have them do not want the losses.
I know of too many people that are living rent free in houses they can’t afford. The banks are hopping that the market comes back, but it will not. Banks like Wells Fargo with large amounts of OAs will eventually take large hits. Warren Buffett will only be right on that one if the American people get fooled again.
December 11, 2009 at 6:43 AM #493103ParticipantI believe that the data for Option ARMs is fixed. Banks that have them do not want the losses.
I know of too many people that are living rent free in houses they can’t afford. The banks are hopping that the market comes back, but it will not. Banks like Wells Fargo with large amounts of OAs will eventually take large hits. Warren Buffett will only be right on that one if the American people get fooled again.
December 11, 2009 at 6:43 AM #493489ParticipantI believe that the data for Option ARMs is fixed. Banks that have them do not want the losses.
I know of too many people that are living rent free in houses they can’t afford. The banks are hopping that the market comes back, but it will not. Banks like Wells Fargo with large amounts of OAs will eventually take large hits. Warren Buffett will only be right on that one if the American people get fooled again.
December 11, 2009 at 6:43 AM #493578ParticipantI believe that the data for Option ARMs is fixed. Banks that have them do not want the losses.
I know of too many people that are living rent free in houses they can’t afford. The banks are hopping that the market comes back, but it will not. Banks like Wells Fargo with large amounts of OAs will eventually take large hits. Warren Buffett will only be right on that one if the American people get fooled again.
December 11, 2009 at 6:43 AM #493815ParticipantI believe that the data for Option ARMs is fixed. Banks that have them do not want the losses.
I know of too many people that are living rent free in houses they can’t afford. The banks are hopping that the market comes back, but it will not. Banks like Wells Fargo with large amounts of OAs will eventually take large hits. Warren Buffett will only be right on that one if the American people get fooled again.
December 11, 2009 at 8:47 AM #492986Rt.66
ParticipantWhat the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.
December 11, 2009 at 8:47 AM #493148ParticipantWhat the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.
December 11, 2009 at 8:47 AM #493533ParticipantWhat the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.
December 11, 2009 at 8:47 AM #493622ParticipantWhat the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.
December 11, 2009 at 8:47 AM #493860ParticipantWhat the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.
December 11, 2009 at 9:22 AM #492996Arraya
Participant[quote=Rt.66]What the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.[/quote]
It all depends on what payment they were paying. If they were paying the minimum, and we don’t have stats nor a way to get them so we can only speculate, then they will default or try to mod. No ifs ands or buts, people paying the minimum will re-cast, not reset, to a much much higher payment. Interest rates are irrelevant.
Still, looking for certain “time bombs” is futile, IMO
Defaults have been a record highs nationally for 3-4 months strait. Trying to figure out the option arm affect is interesting and worthy research but only a part of much bigger confluence of forces.
Lets not forget the unemployment time bomb. How many people lost their employment in 2009 and are still sitting in their house enjoying a free place to stay happy about the banks reluctance to take back there home because of balance sheet reasons or why ever they are stalling.
December 11, 2009 at 9:22 AM #493158Participant[quote=Rt.66]What the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.[/quote]
It all depends on what payment they were paying. If they were paying the minimum, and we don’t have stats nor a way to get them so we can only speculate, then they will default or try to mod. No ifs ands or buts, people paying the minimum will re-cast, not reset, to a much much higher payment. Interest rates are irrelevant.
Still, looking for certain “time bombs” is futile, IMO
Defaults have been a record highs nationally for 3-4 months strait. Trying to figure out the option arm affect is interesting and worthy research but only a part of much bigger confluence of forces.
Lets not forget the unemployment time bomb. How many people lost their employment in 2009 and are still sitting in their house enjoying a free place to stay happy about the banks reluctance to take back there home because of balance sheet reasons or why ever they are stalling.
December 11, 2009 at 9:22 AM #493543Participant[quote=Rt.66]What the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.[/quote]
It all depends on what payment they were paying. If they were paying the minimum, and we don’t have stats nor a way to get them so we can only speculate, then they will default or try to mod. No ifs ands or buts, people paying the minimum will re-cast, not reset, to a much much higher payment. Interest rates are irrelevant.
Still, looking for certain “time bombs” is futile, IMO
Defaults have been a record highs nationally for 3-4 months strait. Trying to figure out the option arm affect is interesting and worthy research but only a part of much bigger confluence of forces.
Lets not forget the unemployment time bomb. How many people lost their employment in 2009 and are still sitting in their house enjoying a free place to stay happy about the banks reluctance to take back there home because of balance sheet reasons or why ever they are stalling.
December 11, 2009 at 9:22 AM #493632Participant[quote=Rt.66]What the OP’s article is missing is that its neg-am “recasts” not interest rate “resets” that is the big problem. California is ground zero for this painfest.
But if you are trying to sell houses then you need to at least try and make it look as though now is a good time to buy. To do that you need to convince people things won’t be getting worse in 2010 and beyond.[/quote]
It all depends on what payment they were paying. If they were paying the minimum, and we don’t have stats nor a way to get them so we can only speculate, then they will default or try to mod. No ifs ands or buts, people paying the minimum will re-cast, not reset, to a much much higher payment. Interest rates are irrelevant.
Still, looking for certain “time bombs” is futile, IMO
Defaults have been a record highs nationally for 3-4 months strait. Trying to figure out the option arm affect is interesting and worthy research but only a part of much bigger confluence of forces.
Lets not forget the unemployment time bomb. How many people lost their employment in 2009 and are still sitting in their house enjoying a free place to stay happy about the banks reluctance to take back there home because of balance sheet reasons or why ever they are stalling.
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