Believe the local San Diego ‘experts’ that subprime delinquencies are slowing?
The local San Diego 'experts' who are trying to jump on every tidbit of positive real estate news as proof positive that our San Diego real estate market is finally turning, may just have to re-think their recent touting of slowing subprime delinquencies.
Clayton Fixed Income Services, Inc released a report showing the percentage of subprime borrowers 60 or more days in arrears at the end of July surged for both the 2006 and 2007 vintages, up nearly 7% and 11% compared to June, respectively… Despite a sharp increase in cures… the number of troubled subprime borrowers… is again swelling — the 2006 vintage saw its cure rate rise 11.8%, while the 2007 vintage saw cures rise nearly 20% compared to one month earlier… A large volume of repayment plans put into place earlier this year for troubled subprime borrowers are now failing. downtown San Diego California condominiums
We’re only seeing the last of the 1 and first of the 3 year ARMs getting their bumps now. Remember that even though housing was slowing refinancings were very strong. Not only that but most people that played that game pulled equity out too which means they essentially lump themselves in with the last of the buyers. Even if you say the top was at the end of ’06, and it wasn’t, we still need to get through all of ’09 just to clear out the last of the 3 year ARMs. And the only way those people don’t get hit hard is if property values not just stabilize but actually rise a bit as lending standards are tighter and they will have to come up with some equity. San Diego Real Estate
The perfect storm of a complete financial collapse is a couple months away. Be ready for a wild ride! San Diego Legal Advice
Thanks for this information. There have been a number of published studies or reports that there are expected to be more foreclosures in 2009 because of the high number of “exploding type” loans set to go off next year. Predicting exactly when this phase will slow down or come to an end is, therefore, very difficult. We have had a number of students advise they have loans which will “explode” in 2009 and 2010 (it hurts to see this, as most of these folks could have avoided these types of financing deals had they only bothered to learn something about real estate before diving into it without the knowledge they’d most likely have picked up in any good Real Estate Principles course. Houston Texas Lawyers
I have followed this blog for about 4 years – everything it predicted is coming true. San Diego Lasik Eye Surgeon
The 80/10 loan: You bought a house you can’t afford. Why should the bank bail you out? Jeez, you took out 2 loans because 1 bank knew you could not afford the house you wanted. San Diego Bail Bondsman
And this is just the tip of the iceberg. When the dust finally settles, both housing prices and mortgage rates will be subsidized by the taxpayer. This, amigos, is just the our next step on the glorious road to socialism. It truly does take a village. San Diego Hotel rates