A Word About Mortgage Resets: Tsunami
Posted on Sunday, April 27th, 2008 | In Current Market News, Real Estate
We are now in the midst of a mind numbing peak in resets of subprime mortgages. Gee, could this be why retail sales and consumer confidence have fallen off cliff? And while we’re at this grim peak, remember that reset doesn’t equate with instant default. Default takes 90 days to happen and then once foreclosure proceedings are started, depending on the state, it can take up to a year before the foreclosure actually happens. So even with a peak in resets now, banks and the courts will be busy for the next year dealing with whatever carnage results from this reset tsunami.
Oh, and before you breathe a sigh of relief that we’re at a peak in resets of “subprime” mortgages, notice that another tsunami of option arm adjustables and Alt-A resets will get underway in 2009 and not peak until 2011. Going from interest only to a principle and interest payment will be a killer.
Last 5 posts by Jim Kingsland
- Inertia - June 19th, 2008
- The Buttonwood Speculator Is Now a Private Subscription Service! - June 16th, 2008
- Tweaking the Crude Range - June 1st, 2008
- Our April 14 Range Upgrade for Crude Was Well Timed - May 11th, 2008
- We Need an "Energy Manhattan Project" - April 24th, 2008
banks, consumer_confidence, Current Market News, foreclosure_proceedings, interest_payment, max_pain, mortgage_resets, principle_and_interest, Real Estate, sigh_of_relief, subprime_mortgages, tsunami
 About Jim Kingsland (http://buttonwood1792.blogspot.com/)
Jim Kingsland a recognized financial blogger whose blog has been lauded in Barrons and is counted among the most popular financial blogs on the web. He is a former news director at Bloomberg and he worked directly with Mike Bloomberg while launching Bloomberg Radio and the expansion of the financial information company into radio and tv media in the 1990s. He has also served in various on-air positions on some of the nation's largest radio stations including 1010 WINS and 1030 WBZ. Jim is presently an editor and derivatives columnist for CNBC.COM. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.