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

To: Skeeter Bug who wrote (233839)	12/21/2009 12:06:31 AM
From: The Reaper	Read Replies (1) \| Respond to of 306849

Wachovia was huge with the Pick-a-Pay loans with teaser rates for the first five years. Those are the loans that Wells Fargo has now. They have a 5-year recast where they convert to a conventional 25-yr. amortized loan. Those folks have had increasing balances for five years with their property value going down. Thise loans start recasting in 2010. That's the next wave that everybody is talking about. I can't understand how WFC is still above 20 but this is a brave new world for financial stocks. I think FirstFed was also big in this type of loan. We all know where they ended up.