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Post by unlawflcombatnt on Jul 12, 2007 2:02:35 GMT -6
The following story headline was deleted by the real estate Gestapo from CNN for unstated reasons. (Probably for excessive truthfulness) The headline was replaced with the following title Mortgage resets: Record bill coming due Billions in subprime ARMs will be subject to higher payments[/b].[/url] Below is an excerpt from the article by Les Christie (courtesy of patrick.net.) " More than two million subprime adjustable rate mortgages (ARMs) are poised to reset at much higher rates in coming months, worsening an already suffering housing market.
Borrowers who took out hybrid ARMs in 2004 and 2005 to secure low "teaser" rates for the first two or three years of the loan may see their monthly mortgage payments climb by 35 percent or more. Consumer groups and politicians worry that hundreds of thousands of subprime ARM borrowers will be unable to keep up with their mortgage payments and will lose their homes.
"In October alone more than $50 billion in ARMs will reset," according to Mark Zandi, chief economist and co-founder of Moody's Economy.com. That's a record, according to Zandi.
Foreclosures: Hardest hit zip codes A buyer in 2005 with poor credit and limited means might have signed on for a $200,000 2/28 hybrid ARM, locking in a fixed rate of 4 percent for two years. After paying $955 a month, his bill would now be set to spike to $1,331, a 39 percent increase...."
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Post by jeffolie on Jul 12, 2007 13:07:17 GMT -6
Check out the Credit-Suise chart of the future of ARM resets coming on a monthly basis. Also, many other cool housing related charts. patrick.net/wp/
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Post by unlawflcombatnt on Jul 12, 2007 14:21:50 GMT -6
Those are some great charts from patrick.net. The most interesting one was the one from the NY Times shown below. Nationwide, home prices have increased 90%, AFTER adjusting for inflation, since 1997. Again, "what goes up, must come down." In every case of a price spike, prices have reverted back to their earlier level. The current spike is clearly the largest spike ever in over 100 years. If history repeats itself, nationwide home prices will eventually decline 40-50%, even without a recession. If there is a recession, prices will drop even more.
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Post by jeffolie on Jul 12, 2007 15:56:57 GMT -6
Nearly 100 % inflation in housing in the last 10 years. Clearly the CPI is a lie. You can trust the government to lie.
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