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What will happen to the housing market if...
- Thread starter Mike-san
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Ski_Banker
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I'm not saying a word, except that *many of Primes Best* and virtually all of the rest of the population are looking blind into the review mirror. With ski goggles.
In the article they writer mentioned some banks were cutting off lines of credit with money left to borrow. He did not specify if those were HELOC's. If that is the case I sure won't be paying down any of my HELOC's anytime soon.
Any ideas anyone?
Edit...I thought all Heloc's come with a lifespan pre set by the lender and can't be shut off unless payments are in default.
Yeah what a ride, now let me buy it back for 50 cents on the dollar:biggrin:
Ski_Banker
Suspended
You can do that but guess what, I'm not a buyer yet. This will take years to sort out and hit bottom.
I'll make a small fortune along the way, it seems. Sweet, caveat emptor.
I am talking 50 cents on the dollar for my own stuff, which probably will never happen because I PAY MY BILLS....which sucks because I bet some one who doesn't pay their bills will get that deal. As for anything on the open market....10-20 cents on the dollar baby..:wink: :biggrin:
Suprime and Alt-a program started out from the beginning as a different program and guidelines. However, about 8-9months into the implementation, it became a mixture of both where you can do the 1st on subprime and 2nd as alt-a ....very popular with 80/20 programs where the 20% goes to Heloc. With that being said...the only program that you can stop the borrower from maxing out their line is Heloc. Right now from what I am hearing, Countrywide is the most liquid when it comes to the Secondary Market. They are buying below par on aged prime loans where it should be 102 to 102.5 ....typical current market loans priced out way worse that beofore........CW is buying to hold for portfolio.
Ski_Banker
Suspended
write this down.
YEARS
ok, thanks.
YEARS
ok, thanks.
- Joined
- 21 June 2005
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- 1,081
Once again, Uncle Sam needs to step in to protect those "poor" souls who signed adjustable rate mortgages who were then later "surprised" when their mortgage rate adjusted.
http://news.yahoo.com/s/ap/20071218/ap_on_bi_ge/fed_mortgage_crisis
http://news.yahoo.com/s/ap/20071218/ap_on_bi_ge/fed_mortgage_crisis
Not so sure Uncle Sam is really looking out for the "poor souls". I think it's more about looking out for American business. The govt wants to make it so people can still afford their loans, so that....the BANKS can still get cash flow instead of being saddled w/ assets (homes) nobody wants.
I want those houses just not at the price the bank would think they are going to get for them.
- Joined
- 21 June 2005
- Messages
- 1,081
Understood. I'm just a little weary hearing about the innocent homebuyers who were tricked. To me, it's pretty clear what I can and can't afford. To say that these people will end up on the streets is absurd...home ownership is a privelige, not a right,.... there are these things called rental properties ...IMO, the govt needs to let business be business and if stupid, greedy people get screwed, they should have the burden of making themselves "unscrewed".
From the Greenberg article
"The ‘Pay-Option ARM implosion’ will carry on for a couple of years. In my opinion, this implosion will dwarf the ’sub-prime implosion’ because it cuts across all borrower types and all home values."
"75% of Option ARM borrowers make the minimum monthly payment. Eighty percent-plus are stated income/asset. Average combined loan-to-value are at or above 90%."
To the regular person this type of loan just sounds like a disaster, I can understand for flipping purposes, but this seems to be the deal that can put someone in a house that is triple what they could afford. I have a really hard time feeling bad for those who signed off on a loan that could end up being
%125 of what they borrowed.
"The ‘Pay-Option ARM implosion’ will carry on for a couple of years. In my opinion, this implosion will dwarf the ’sub-prime implosion’ because it cuts across all borrower types and all home values."
"75% of Option ARM borrowers make the minimum monthly payment. Eighty percent-plus are stated income/asset. Average combined loan-to-value are at or above 90%."
To the regular person this type of loan just sounds like a disaster, I can understand for flipping purposes, but this seems to be the deal that can put someone in a house that is triple what they could afford. I have a really hard time feeling bad for those who signed off on a loan that could end up being
%125 of what they borrowed.
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