Trouble on the horizon? From the Central Valley Business Times :
ARMs could clobber homeowners
SACRAMENTO January 29, 2007 7:37am
More than $1 trillion in adjustable rate mortgages (ARMs) will reset this year bringing higher monthly payments and a corresponding increased risk of foreclosure to thousands of homeowners, says Patrick McGilvray, president of the Home Buying Center, LLC, a Sacramento firm that buys homes directly from owners.
Analysts are divided on what this change will mean for the American and global economies, but many families and commentators are worried, says Mr. McGilvray.
Many Californians, and their counterparts in the rest of the country, live paycheck-to-paycheck and, because of unrestrained credit card spending, actually spend more than they make every year, he says.
He points to statistics from real estate information company DataQuick Information Systems of La Jolla that say in 2000 only 18.9 percent of homebuyers in the Sacramento region purchased properties using ARMs. This number dropped in 2001 to 12.1 percent, but spiked to 65.1 percent in 2004, and 72.8 percent in 2005. The number for 2006 was 62.5 percent.
Monday, January 29, 2007
"$1 trillion in adjustable rate mortgages (ARMs) will reset this year"
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7 comments:
That works out to 3.3 million homes, no bubble here, move along...
Yo... did you see the article about Fremont Mortgage? While not an implosion, it is certainly a move in the direction of a credit squeeze for the subprime sector.
Hat tip to realist over at Calculated Risk.
http://tinyurl.com/2gjtjr
I saw that Idaho, looks like the noose is getting tighter and tighter.
I am still keeping my eyes open for two more guys to possibly go down in the next few days.
For all the realtor's out there who got into the biz the last couple of years. It is not to late to take your last comission check buy some new cans and start serving chicken wings at Hooters.
One long time top producer A/E at Argent just left to
work for Impact Lending and his account manager also just left
too. So, I am sending him a loan to his new company as I believe
in his ability to get my loan funded.
Hey Crispy, this was posted today,it looks like Argent is going down for the count. I think they are keeping all the AE's in the dark until 5:00 pm friday, total MLN scenario. Just a guess, but I think Argent his history, which is huge, they are very well known, this could be the catalyst to send lender-imploder to 100 in a few weeks.
Oh by the way for all you ex-loan officers and realtors I want to see new cans when I pick up my wings for Sunday.
This is the make or break year. It will show whether the housing depression will spill over into the rest of the economy.
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