Are we done with foreclosures?

must read! must read!... FYI.. the way I would have been able to afford a $2.5MM unit in 2007 was => option ARM... from my best friend in Manhattan Mortgage... he was like all the COOL bankers are doing it!

I'm gonna keep bumping this thing....

InvestorMan - T2 owes us some $, all their arguments can be found on SE :), they just put it into a nice graph display...

seriously, i'm gonna keep bumping and grinding this thing (it's a sailing term)....

Hahaha. I agree, my friend. I was passed this on another forum I frequent and, well, it's just pretty good stuff.

After 25+ years of relatively uninterrupted prosperity, we've grown accustomed to the good life. The short term memory of most of the population leaves us unbelieving and unwilling to accept that, perhaps, we're in for much more trouble that we can imagine. In the past quarter century, record debt increases have built us up to where we were.

Will it continue and will this just be a hiccup in the push upward? Or, is this the end of a good run that will have to be a time of hardship?

Either way, I'm bullish long-term on the US and it's prospects. We are nowhere near "finished' as a superpower or country. But, IMHO, we're due up for a long, drawn out "downturn" while we re-adjust our ways of living with, thinking of, and dealing with high debt levels fueling growth.

GDP = P stands for production! not for Consumption!

uwsmom please read this b/f bidding... let the fallout from prime defaults flush out b/f bidding.... I know the hormones are raging (i've been there w/ the 2nd child) and the nesting instinct is strong.... but plz plz read this first.

uwsmom... if it's a rental... rent away! my bad :)

it's long but it's mostly easy, takes far less time than the Warren video.

i particularly like page 9. and then 10.

aboutready.... yes yes! :) pages 9 and 10

Page 41 is scary : "83% of Option ARMs written in 2004-2007 were low- or no-doc (liar’s loans)"
Aren't these Option Arm's rates suppose to reset in 2010?
Sounds like a storm is coming....

the scary part is the Fed shot their wad in trying to keep IR low for the resets... the resets coming on-line in 2009-2010, ain't gonna be masked by the FED trying to keep IR low... I wonder if that's why Bernie is keeping mum on his IR play... he knows the shit storm and is trying to time it w/ all the O-Arms coming due... makes you wonder :)

58% of ARMS originated in California...I shudder to think what that's going to do to the state considering the condition it is already in.

I think I posted a link to this chart before, but here's what Credit Suisse sees coming for resets:

http://bp3.blogger.com/_pMscxxELHEg/RxzD0s_7EYI/AAAAAAAABB4/ljDSXZhMG3o/s1600-h/IMFresets.jpg

You're right about the storm coming and the Fed blowing their load too early. If interest rates rise when these next resets come in, it's going to be mainstream America, NOT the speculators, unworthy, or liars, that are going to be losing their homes.

the option-ARMs are really a recast issue. the rates will matter, of course, but what will doom the homeowners even without rate increases is the fact that the principal owed will increase when the additional amounts outstanding are folded into the recast.

the interest rates issue will continue for all ARM loans still out there, which is why they tried so damned hard to get as many of the re-fid as possible.

No wonder Governator is wetting his pants... Can a State file for bankruptcy ? How about Obama sells it back to Mexico instead :-)?

My favorite line: Recent Signs of Stabilization Are Likely the Mother of All Head Fakes

ar: agreed they really didnt highlight the relative severity of the recast (versus reset). In fact they seemed to use the terms interchangably at one point.

watch out below!.. .here come the bump and grind....

Investor Man: Thanks for posting this it's a very interesting read. I would like to buy too but I think I'm going to continue to wait it out to see what 2010 brings before I purchase. I currently live in a rent stabilized apartment so I'm in no rush.

page 28: "...50% of all subprime and Alt-A loans in existence when the collapse happened were cash-out refis ...."

hmmmmm.... who been sayin' 'dat fo' bit now?

for ericho69... watch out below..... I KNOW YOU ARE STAYING JUST ON THE LIC blogs :) por que? and yes that unit sold for way below your in price 6 months ago... -shrug- go figure....

"it's going to be mainstream America, NOT the speculators, unworthy, or liars, that are going to be losing their homes."

InvestorMan, part of the problem we are in is that those sets are not mutually exclusive. if those that lied in their mtg applications get prosecuted... oh, that will never happen! cause that's mainstream America.

"I currently live in a rent stabilized apartment so I'm in no rush. "

hey, are rent stab going to go down? did that ever happen before?

here and there i've been seeing more listings for coops in decent buildings, where one unit is up for sale b/c of foreclosure.

i think it is unlikely that foreclosures will suddenly be 'done' now.

Hi Admin, I don't know if rent stab will go down but if they did I would certainly be happy. I highly doubt things are going to get any better anytime soon, here's yet anther article that just came out today http://finance.yahoo.com/news/1st-quarter-wiped-out-13-apf-15506413.html?sec=topStories&pos=main&asset=&ccode= regarding American net worth being wiped out