1.1 Million Mortgage Defaults Projected
"The peak pinch year will be 2008," Christopher Cagan, research director at First American CoreLogic, says of a coming surge in borrowers facing resets in their adjustable rate mortgages. He projects 1.1 million reset-related defaults over the next five years, and an additional 70,000 for every 1 percent fall in home prices, especially in places like San Diego where ARMs represented 40 percent of all new loans issued last year. "The more prices fall, the less equity [homeowners] have and the more trouble they'll have refinancing," he says.[tags]mortgage defaults,foreclosures,housing market,real estate market,housing bubble[/tags] San Diego real estate agent San Diego foreclosures
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Cry now, smile later. Things do change over time don’t they? Auto accidents San Francisco
Regardless of home prices, we almost always have an influx of population from other states. More citizens means higher demand, even if fewer and fewer of us can afford a home. bail bonds San Diego
So if I was a real estate agent and someone wanted me to list a home at $894, I could just tell them “there are 6 people in the area that can afford your home.. I called them.. they aren’t interested.. How about you drop to $794K and I’ll call the 10 people that could swing that payment?”
Pop goes the bubble…
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