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

To: Jim McMannis who wrote (176574)	1/12/2009 2:09:19 PM
From: patron_anejo_por_favor	Respond to of 306849

Another 31% in Phoenix and cap rates might actually pencil out here.....if anyone's left to rent.<G/NG>

To: Jim McMannis who wrote (176574)	1/12/2009 2:14:22 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

Wow, that's gotta absolutely nuke any lending exposure banks have in those areas. Anything that does foreclose will return next to nothing. Even 50% LTV loans not safe. And why would any rational person keep paying on a mortgage if they are THAT far underwater? How many years' salary is a credit rating worth after all? Wouldn't surprise me to see losses approaching 50% of loan exposure in some of those areas. No TARP big enough to cover these. Am I too pessimistic? How come Florida bank stocks are even trading any more? FDIC should move to get these banks pawned off before the industry realizes just how bad they are. `BC