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To: seti who wrote (228336)	3/18/2007 10:47:33 AM
From: Dan3	Respond to of 275872

OT - Re: Bad loans are estimated at $300 billion. About 2/3 or that will be recovered from repossessions, leaving $100 billion. That's out of the $10 trillion housing market. [Business Week] Go to this thread Subject 51347 to discuss the issue. ~$6 Trillion in mortgages turned over in the past 3 years. Of those, ~45% were either subprime or Alt-A. I'm not sure how big the impact will be, but notion that the lenders (or CDO/CMO holder) will get back 66% of losses limited to $300 Billion is unlikely - it's June Cleaver cute and innocent. Here's another link for you ml-implode.com My wife is a lawyer who specializes in disputes between mortgage companies and title insurance companies and foreclosures are often involved. That's not a dig at you or anyone else who hasn't spent time researching the issue, but at the editorial staff at Business Week who supposedly did and should know better. If you want to get a feel for what's been happening at the leading edge of the property markets, check out this set of homes culled from current listings flippersintrouble.blogspot.com Consider the price paid and the current asking price (at which the homes haven't been selling). Imagine what's going through the minds of the mortgage holders (and their lenders). Keep in mind that the mortgage maker borrowed the money they lent from someone, and are responsible for the compounding interest costs that occur from the time the homeowner stops paying the mortgage to the time the house is sold. Home's that have been lived in by people in deserately financial circumstances typically suffer a LOT of wear, tear, and deferred maintenance. The subprime and Alt-A mortgages were generally made at close to 100% (sometimes more) of the price of the home at the peak of the market. There are always legal fees and delays associated with a foreclusure, often hefty ones. And the carrying costs during those delays are born by the lender. Business Week must have at least a couple of real idiots on staff.