[DWCAP]

I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.

[DWCAP]

I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.

[DWCAP]

I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.

[DWCAP]

I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.

[DWCAP]

I hadnt considered that FSD, thanks. So basically these morgages are going to reset but the reset, thanks to the FED dumping rates and pushing money like a coke dealer, arnt really that bad. Hadn’t considered that in my OH S%$t! moment.

I wasn’t totally off base though, the option arms in there are still waiting to have their day in the sun. And those have a built in significant jump no matter what the rate, its called principal. (i know i know, you found like 2 people in BFE that are paying like they should be, but most arent.) Plus all the subprime fun.

I guess the other question that needs to be asked then is rate changes in the future. Were the LIBOR to go up again like it was before the pushing began, we would have increasing defaults as it rises. Not saying that would happen, just that the REALLY low rates sitting around right now will go away eventually. Maybe 5-8 years, maybe more. Maybe incomes will go up enough to cover the increases and it is a moot point. Home lending has never really been done like this, so their is no historical president to copy.
I still remain suprised how many people exposed themselves in a period of historically low rates to this.

[DWCAP]

esmith,

I dont know what to say, if it is a screaming deal, jump on it.
The thing I kinda see is the last part of what you said. “why would they pay that?” I thought, well, maybe schools? The problem is that there are a number of rentals in the area that are 2/2 for 1500-1800. So any young family is sure to not want to over pay by 500-700/month. Add in the whole of MM, with its 2/2’s at 1300-1600 and it looks even worse.
If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium. Maybe he wasnt able to maximize his investment like you described and is trying to cover himself.
The whole scripps ranch rents seem kinda distorted to me. The few craigslist listings I saw were all over the place. 3/2 condos for less than your condo. Some “creative” financing rent to own kinda stuff where they rip you off in rent, but if you are willing to buy, they put part of it toward the cost. Even a house for the same cost as your condo (PostingID: 537346452). I am no expert, maybe someone smarter than I can figure it out. But I suspect this is a sign of real stress in the market when LL’s who overpayed are trying to inflate the market to a point that they can survive. Why would I rent a 2/2 condo right next to the freeway when I could rent a 3/2 house on some quiet land a mile away for the same price, in the same zip code and everything? But hey, a sucker is born every day and this guy just needs one.

[DWCAP]

esmith,

I dont know what to say, if it is a screaming deal, jump on it.
The thing I kinda see is the last part of what you said. “why would they pay that?” I thought, well, maybe schools? The problem is that there are a number of rentals in the area that are 2/2 for 1500-1800. So any young family is sure to not want to over pay by 500-700/month. Add in the whole of MM, with its 2/2’s at 1300-1600 and it looks even worse.
If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium. Maybe he wasnt able to maximize his investment like you described and is trying to cover himself.
The whole scripps ranch rents seem kinda distorted to me. The few craigslist listings I saw were all over the place. 3/2 condos for less than your condo. Some “creative” financing rent to own kinda stuff where they rip you off in rent, but if you are willing to buy, they put part of it toward the cost. Even a house for the same cost as your condo (PostingID: 537346452). I am no expert, maybe someone smarter than I can figure it out. But I suspect this is a sign of real stress in the market when LL’s who overpayed are trying to inflate the market to a point that they can survive. Why would I rent a 2/2 condo right next to the freeway when I could rent a 3/2 house on some quiet land a mile away for the same price, in the same zip code and everything? But hey, a sucker is born every day and this guy just needs one.

[DWCAP]

esmith,

I dont know what to say, if it is a screaming deal, jump on it.
The thing I kinda see is the last part of what you said. “why would they pay that?” I thought, well, maybe schools? The problem is that there are a number of rentals in the area that are 2/2 for 1500-1800. So any young family is sure to not want to over pay by 500-700/month. Add in the whole of MM, with its 2/2’s at 1300-1600 and it looks even worse.
If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium. Maybe he wasnt able to maximize his investment like you described and is trying to cover himself.
The whole scripps ranch rents seem kinda distorted to me. The few craigslist listings I saw were all over the place. 3/2 condos for less than your condo. Some “creative” financing rent to own kinda stuff where they rip you off in rent, but if you are willing to buy, they put part of it toward the cost. Even a house for the same cost as your condo (PostingID: 537346452). I am no expert, maybe someone smarter than I can figure it out. But I suspect this is a sign of real stress in the market when LL’s who overpayed are trying to inflate the market to a point that they can survive. Why would I rent a 2/2 condo right next to the freeway when I could rent a 3/2 house on some quiet land a mile away for the same price, in the same zip code and everything? But hey, a sucker is born every day and this guy just needs one.

[DWCAP]

esmith,

I dont know what to say, if it is a screaming deal, jump on it.
The thing I kinda see is the last part of what you said. “why would they pay that?” I thought, well, maybe schools? The problem is that there are a number of rentals in the area that are 2/2 for 1500-1800. So any young family is sure to not want to over pay by 500-700/month. Add in the whole of MM, with its 2/2’s at 1300-1600 and it looks even worse.
If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium. Maybe he wasnt able to maximize his investment like you described and is trying to cover himself.
The whole scripps ranch rents seem kinda distorted to me. The few craigslist listings I saw were all over the place. 3/2 condos for less than your condo. Some “creative” financing rent to own kinda stuff where they rip you off in rent, but if you are willing to buy, they put part of it toward the cost. Even a house for the same cost as your condo (PostingID: 537346452). I am no expert, maybe someone smarter than I can figure it out. But I suspect this is a sign of real stress in the market when LL’s who overpayed are trying to inflate the market to a point that they can survive. Why would I rent a 2/2 condo right next to the freeway when I could rent a 3/2 house on some quiet land a mile away for the same price, in the same zip code and everything? But hey, a sucker is born every day and this guy just needs one.

[DWCAP]

esmith,

I dont know what to say, if it is a screaming deal, jump on it.
The thing I kinda see is the last part of what you said. “why would they pay that?” I thought, well, maybe schools? The problem is that there are a number of rentals in the area that are 2/2 for 1500-1800. So any young family is sure to not want to over pay by 500-700/month. Add in the whole of MM, with its 2/2’s at 1300-1600 and it looks even worse.
If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium. Maybe he wasnt able to maximize his investment like you described and is trying to cover himself.
The whole scripps ranch rents seem kinda distorted to me. The few craigslist listings I saw were all over the place. 3/2 condos for less than your condo. Some “creative” financing rent to own kinda stuff where they rip you off in rent, but if you are willing to buy, they put part of it toward the cost. Even a house for the same cost as your condo (PostingID: 537346452). I am no expert, maybe someone smarter than I can figure it out. But I suspect this is a sign of real stress in the market when LL’s who overpayed are trying to inflate the market to a point that they can survive. Why would I rent a 2/2 condo right next to the freeway when I could rent a 3/2 house on some quiet land a mile away for the same price, in the same zip code and everything? But hey, a sucker is born every day and this guy just needs one.

[DWCAP]

“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.

[DWCAP]

“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.

[DWCAP]

“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.

[DWCAP]

“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.

[DWCAP]

“of all San Diego mortgages issued in 2004, 80% were adjustable-rate, 47% were interest-only, and 27% involved no down payment.”

This is a quote from rich’s posts linked a few posts up. I had read this before, but I dont think it had really sunk in yet. One of the questions buzzing around in my head every time I read SDR’s short sale monitor, or see that graph about the reset schedules, is “how many can their really be.” The general media does an absolutly horrible job conveying the enormity of the situtation, (duh), but I guess I just didnt/dont grasp how many people are in trouble.
80% adjustable! 47% interest only, which isnt really even reseting yet! And how many of those 20% fixed rate loans are really backed by an adjustable second? Include that 2005, 2006, and the first half of 2007 had generally lower standards of loan quality, and I get a picture of a problem that is ALOT bigger than the general public understands. Imagine if 80% of the buyers in 2004-2006 walked because of no equity and reseting payments!
So what are fundamentals? They are something that apparently no one has been paying attention to for a very long time and we are gonna pay for it.

[Author]

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