Democratic Underground - Perhaps, once he's actually done it, he should get credit. But....

Reply #25: Perhaps, once he's actually done it, he should get credit. But.... [View All]

Subdivisions

(1000+ posts) Send PM | Profile | Ignore

Thu May-28-09 11:17 AM
Response to Original message

25. Perhaps, once he's actually done it, he should get credit. But....

Edited on Thu May-28-09 11:57 AM by Subdivisions

We haven't even reached the brink yet. In fact, if you think the taxpayer has been hit hard so far, you ain't see nothing yet.

And then there's also this:

And, along with all those expected defaults will come more unemployment and less consumerism.

ETA related story:

...

-- Option ARM, Alt-A time bombs. Two categories of loans used for higher-end homes are emerging as the next trouble spots, as foreclosure contagion spreads beyond subprime. Delinquencies are rising for Alt-A loans given to people with good credit who could not document their income. Meanwhile, millions of option ARMs, or adjustable rate mortgages in which borrowers can choose to start off making minimum payments that don't even cover the interest, are expected to start resetting next summer. At reset, borrowers suddenly must make sharply higher payments, which can trigger foreclosures.

The underwater issue comes into play here, too: People who owe more than their home is worth find the door slammed shut on refinancing their way out of trouble.

"Option ARM and Alt-A products will be the next big wave of foreclosures," said Jeffrey Taylor, a forensic accountant with Digital Risk LLC, which provides risk mitigation services for financial firms. "Many of those (borrowers) reached a little further than they should have. With the economy deteriorating, will those people be able to afford those houses?"

...
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/25/MNRB17JFHB.DTL

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Got a message for Democratic Underground? Click here to send us a message.

Reply #25: Perhaps, once he's actually done it, he should get credit. But.... [View All]