whoa....Saysthe ALT-A and Option Arm loans are just beginning to reset and the second wave of foreclosures will start in 2009 to 2011... will make subprime look mild compared to this. Anyone else catch this??
That's one man's opinion. Pretty doom and gloom. They still have time to fix this by freezing rates and then converting to fixed, at the fixed rate available when they signed the original teaser mortgage. That could minimize the effects by 70% on the Option ARMS and exotic loans. Alt A's don't reset. That is the classification for near-prime mortgages.
Yup I watched it and Now I Know that the U.S. Govt. Needs the GSE's FNM & FRE More than Ever Now to Fix this Giant Bush Sanctioned Organized Crime Spree that was allowed to run wild by Bush Govt. non-regualtion Ideologe Fools!
But to be Fair I wonder where the Stinking Democraps & Repukes in Congress were and also in the State and Local Govt.'s?????
All on the Hype just like the whole country was!
I do belive that FNM & FRE will be THE Big Vehicles to use get this crap ran through the system as fast as possible.
I Remain Long and Optomistic.
wiley... I also believe these will be the vehicles the Gov chooses to use to try to navigate out of this sh*t.... my only concern is to what degree & to what extent do they do so and forsake any future profit potential to these GSE's?? Then where does that leave the shareholders?
Don't forget that many of these will be resetting below 5% as interest rates are so low. Also many of these loans were neg ammorization with up to 10 years before resetting or reaching 120% of original principal. With the low rates even the minimum payment now covers all the interest, allowing folks to hang on a bit longer. I am actually in one of these loans for 3 years now. Ifigure we have 2+ years before we meet the max neg ammoriz. At that point we hope the home has recovered most of its upsidedownness. All is not lost.
30 yr fixed rate 4.75% for the people with equity in the homes , job and good credit. So many will benefit from this. Now they have to come up with loan modification for the people who can not qualify and honor them the same rate 4.75%. problem will be solved.