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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (8837)	9/1/2006 6:32:06 PM
From: energyplay	Read Replies (1) \| Respond to of 219619

"Nightmare" mortgages - many of these products were designed for people in unusual situations - such as one spouse working, the other still in grad school...after grad school ends, income jumps with employment. Many of them originated in Los Angeles, where film industry people have unusual cash flows - your TV series gets okay ratings, gets renewed in May, you know you will have work for at least 1 and maybe 2 more years. Everybody from writers, editors, assistant directors, and minor cast members is now doing well. In silicon valley, you will see this done by people waiting for the lock-up period to end so they can sell their stock after an IPO. For people in these situations, mortgages like this make sense, especially if housing prices are rising rapidly. The tax benefits make this look much more sensible. Now when J6P (our famous Joe Six Pack - who spends 2 hours working on his abdominal muscles every day) signs up for one of these, we have a much riskier situation....