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

To: CalculatedRisk who wrote (93931)	11/6/2007 10:47:13 AM
From: Jim McMannis	Respond to of 306849

That's what I thought. Thanks for posting it. 2008. Then another big wave through 2011.

To: CalculatedRisk who wrote (93931)	11/6/2007 10:59:36 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

Although many of the homeowners in the 2009 to 2011 reset periods will refinance (if they can), this shows that the problems in housing will linger for several years. What is especially concerning is all these Option ARM resets in 2010 and 2011. Most of these homeowners are selecting the minimum payments (negatively amortizing) and many homeowners will be upside down when the ARM resets. CR, is it realistic to think that homeowners will refinance if they are upside down on the loan? (i suppose it might depend on just how upside down they are) shouldn't we be expecting another (continuing) wave of defaults?

To: CalculatedRisk who wrote (93931)	11/6/2007 11:23:20 AM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

Thanks, that's just what the doctor ordered....<G>

To: CalculatedRisk who wrote (93931)	11/6/2007 11:24:06 AM
From: Think4Yourself	Read Replies (3) \| Respond to of 306849

That chart is interesting. As I am comparing the two for changes a question arises. How do they calculate the value of the resets out in the future? Is it the original mortgage amount or the expected mortgage amount? If it is the expected mortgage amount, how do they figure it out, especially for the Option ARM's? The level of Option ARM resets in 2010 and 2011 is very disturbing. It was nowhere near as high in the earlier chart. Suggests financial industry's solution to subprime crisis is to push it out a few years and make it an even bigger crisis. How many of those people entered into their mortgages as "renters"? I have been thinking that the biggest wave of defaults was about to hit from October's resets but this new data suggests we will get hit again hard in a few years right when everyone thinks the markets have recovered.