Monday, October 22, 2007

Pain or Pleasure:Two Charts.



















I present for your viewing pleasure or pain depending on your position in this market the latest mortgage reset chart and the foreclosure time table.

Remember that the foreclosures that are on the auction block or listed on the local MLS have been in process for many months. Word on the street is that lenders are trying to delay foreclosures in the "HOPE" that the borrower will be able to begin making the payments again. Seldom happens. The bulk of foreclosure filings won't occur in my informed opinion until 2009. The big resets of ALT-A(above subprime but below prime) occur in the period of 09-11. This will be very interesting, as these folks will reset to full market rates or if they are smart they would have refinanced their mortgage before the market rate reset.
We live in an instant society, unfortunately this slow unwind of Candyland prices will take years. Every bubble cheerleading pundit wants to say, "It's over and we go up from here." How long in your infinite wisdom will the unwind last? Comment, your opinion counts.

2 comments:

Martin said...

Thanks for the graphs. Now we need one that shows how many baby boomer houses will be put up for sale as they retire and how many of the genXers, millenials, etc will be looking for a house.

Anonymous said...

This is why I'm "on the sidelines" as a renter with $400K reserved for a down payment (and growing) and a $350K annual income. I won't buy until all this "creative" financing has reset and prices are at a level that can be justified by incomes.