optimusprime_IHB
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Until at the earliest 2010...
http://www.brokerforyou.com/brokerforyou/?p=413
A little bit of it...
San Diego Real Estate … The Coming Next Wave of Foreclosures
by bob711 — published on July 17th, 2008
San Diego real estate foreclosuresThe first wave of foreclosures occurred due to the re-setting of some "sub-prime" loans. These loans were predominantly the 80/20 loans that were used to assist buyers to obtain property with no down payment. Later in the cycle of the origination of these loans, the documentation requirements were lessened considerably, so that by 2005, buyers were able to obtain 80/20 loans to purchase property with little- to no-income documentation. Buyers speculated on properties increasing in value and had little regard for the payments. As the loans re-set (usually 2-3 years later), the buyers found themselves unable to make the payments or unable to refinance, and the properties ended up in foreclosure.
Here's what we need to understand about these loans:
1. Is that they were spread across the United States (demographic and geographic distribution) and
2. There were a lot of them done for buyers buying new homes. In San Diego, we are seeing the results of these loans as properties in newly constructed developments (Eastlake, San Marcos, Condo conversions, etc.) are defaulting in high numbers. However, the buyers of these properties generally DID understand that the loan would convert or "adjust" after an initial 2-3 (in some cases 5) year period. Further research suggests, however, that these buyers were not necessarily defaulting due to rising payments (the Fed has reduced short term rates significantly, thereby reducing the impact of the adjustment) but rather were defaulting to rid themselves of a negative equity position.
http://www.brokerforyou.com/brokerforyou/?p=413
A little bit of it...
San Diego Real Estate … The Coming Next Wave of Foreclosures
by bob711 — published on July 17th, 2008
San Diego real estate foreclosuresThe first wave of foreclosures occurred due to the re-setting of some "sub-prime" loans. These loans were predominantly the 80/20 loans that were used to assist buyers to obtain property with no down payment. Later in the cycle of the origination of these loans, the documentation requirements were lessened considerably, so that by 2005, buyers were able to obtain 80/20 loans to purchase property with little- to no-income documentation. Buyers speculated on properties increasing in value and had little regard for the payments. As the loans re-set (usually 2-3 years later), the buyers found themselves unable to make the payments or unable to refinance, and the properties ended up in foreclosure.
Here's what we need to understand about these loans:
1. Is that they were spread across the United States (demographic and geographic distribution) and
2. There were a lot of them done for buyers buying new homes. In San Diego, we are seeing the results of these loans as properties in newly constructed developments (Eastlake, San Marcos, Condo conversions, etc.) are defaulting in high numbers. However, the buyers of these properties generally DID understand that the loan would convert or "adjust" after an initial 2-3 (in some cases 5) year period. Further research suggests, however, that these buyers were not necessarily defaulting due to rising payments (the Fed has reduced short term rates significantly, thereby reducing the impact of the adjustment) but rather were defaulting to rid themselves of a negative equity position.
