Ready for the next wave of foreclosures?

Can you c & p? Site requires login.

Did I miss the first wave? Damn!

yes, the "nice" homes will go into FC during 2010-2013. guess now the cram downs might mitigate this.

Worse, a lot of the folks with Alt-As and Option ARMs were speculators who will not be interested in workouts. Get ready for the next wave! Now the fun begins.

will "the fun" hit nyc?

I will try to find the link, but I read somewhere yesterday that the truly worrisome loan delinquency increases recently have been found in the prime jumbo arena. Granted, the losses/delinquencies thus far are showing up mostly in CA and FL, but still.

Also, the Fed and the banks are dodging bullets left and right by keeping interest rates so low. What will happen to the ARMs when they finally raise interest rates? The option-ARMs are screwed, mostly, regardless of the interest rate settings (only more so, obviously, as the rates increase), but all the others holding ARMs of any sort, including HELOC's, that adjust periodically could be doomed. Kind of a phenomenal catch-22. What were people thinking, getting ARMs when rates were so low?

admin - indirectly, yes. It just means that more of the currently performing "assets" on bank balance sheets will stop performing and sink performance even further. But I believe most of those loans were originated in California, Nevada, Florida, Arizona - the states already having trouble, so I doubt we'll start seeing waves of similar foreclosures here. For different reasons, maybe, but not like what's happening elsewhere.

How's this link?

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

If you can't see it, just Google "Credit Suisse mortgage resets." The chart is at the top of the article in the first link ("Calculated Risk IMF...) is what I was trying to link to.

InvestorMan, "nice" chart.

Here's the link I was talking about www.calculatedrisk.com/2009/01/wsj-on-jumbo-loans.html

Also, even if ARMs have already reset, or recast I believe in the case of pay-option ARMs, they are still subject to upward revision periodically, so many that are safe today may very well not be in two years.