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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (93918)	11/6/2007 8:23:19 PM
From: Dan3	Respond to of 306849

Re: Please enlighten It's important to keep in mind that the foreclosure doesn't happen the day after a rate reset. Homeowners usually manage to make a few more months' payments, then they give up and stop paying, then months more before the legal process of foreclosure is completed and they're out in the street. Then the bank gets to try to sell it, and, eventually, it's sold and the loss is recorded. I don't know how long the foreclosure lag is, but I'd guess ~9 months to foreclosure and up to years before it's resold and the real value (and bank's loss) is known.