Comments on: Alt-A Loans: The Crisis Yet To Come? http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/ Learn, Network, Invest Tue, 14 Oct 2008 16:02:42 +0000 http://wordpress.org/?v=2.6.1 By: Tom Lindmark http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-57065 Tom Lindmark Tue, 27 May 2008 02:20:30 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-57065 I share your concern about Alt-A defaults and would also add Option ARMs to the mix. Neither have experienced significant resets. Here is a link that will show you graphically the calendar for the resets as well as the geographic concentration of these loan products-http://blog.metro-real-estate.com/?p=304 I share your concern about Alt-A defaults and would also add Option ARMs to the mix. Neither have experienced significant resets. Here is a link that will show you graphically the calendar for the resets as well as the geographic concentration of these loan products-http://blog.metro-real-estate.com/?p=304

]]> By: Nadine http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56981 Nadine Fri, 23 May 2008 06:55:27 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56981 Hard to speculate...Everything is just too uncertain and unpredictable. Hard to speculate…Everything is just too uncertain and unpredictable.

]]> By: James Connery http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56942 James Connery Wed, 21 May 2008 16:26:23 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56942 Sorry about my spelling and sentence structure above, half awake here, long night! Sorry about my spelling and sentence structure above, half awake here, long night!

]]> By: James Connery http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56941 James Connery Wed, 21 May 2008 16:24:05 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56941 In the last quarter of 06, the money gurus predicted a total sub prime related losses of about 100 billion. Guess what folks? Last quarter of 07 they predicted about 450 Billion in sub prime related losses. Guess what? And, says the Times, “In coming years, if price declines are in line with expectations, Alt-A losses are projected to total about $150 billion. Guess what? ALT-A is a much bigger animal than sub prime! So, look ahead to 09-10..... Sadly the total losses combined will far surpass and of these experts wildest predictions. Its MY prediction that we already have 150 billion in ALT-A related losses not yes exposed and we will triple that by the end of 09. In the last quarter of 06, the money gurus predicted a total sub prime related losses of about 100 billion. Guess what folks? Last quarter of 07 they predicted about 450 Billion in sub prime related losses. Guess what?

And, says the Times, “In coming years, if price declines are in line with expectations, Alt-A losses are projected to total about $150 billion.

Guess what? ALT-A is a much bigger animal than sub prime! So, look ahead to 09-10….. Sadly the total losses combined will far surpass and of these experts wildest predictions. Its MY prediction that we already have 150 billion in ALT-A related losses not yes exposed and we will triple that by the end of 09.

]]> By: James Connery http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56940 James Connery Wed, 21 May 2008 16:06:18 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56940 Mr. Mortgage ALT-A u-tube video: http://www.youtube.com/watch?v=pmeBSWI9sF8 Also Google- Implode 0 Meter Mr. Mortgage ALT-A u-tube video:

http://www.youtube.com/watch?v=pmeBSWI9sF8

Also Google- Implode 0 Meter

]]> By: James Connery http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56939 James Connery Wed, 21 May 2008 15:57:36 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56939 Oh Charles, thanks for the honorable mention and I am enjoying your Blogging. Oh Charles, thanks for the honorable mention and I am enjoying your Blogging.

]]> By: James Connery http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56938 James Connery Wed, 21 May 2008 15:56:20 +0000 http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/#comment-56938 I am trying to locate a very good pie chart a Wall Street associate has sent me a few weeks ago. We are in a flat period temporarily by comparison of what's to come reset wise! AND as Charles mentioned the ALT-A crisis is going to be absolutely INSANE! 2009 will be worse than 09 and the hugest pain will be felt in 2010! The Fed and Bank Chairman and our skeet shootin emporer have actually managed to manipulate the banks and investors into being more cooperative in regard to loan workouts. FHA has stepped in with a TINY teaser crutch and congress continues to micro manage wall street and the American Citizens. This is all creating an illusion, a FALSE consumer CONFIDENCE if you will. I keep hearing people saying "our market has almost corrected" "the worse is over" "home sales are up"... BS! Can you say BAND-AIDE and ILLUSION? Folks, default are continuing to raise the previous record each month and there is certainly no slow down of REO inventory. The banks are thinking just maybe there will be a bail out and that's just NOT going to happen, unless Hugo Chavez moves in or China calls all of our loans due (not really funny) and forecloses on us, taking over total control. Face it, when banks end up with a property at the trustee sale, they RECORD that as a sale and often time at below market. Then the properties in many cases sit on the market and go down in price each month. Finally they will be purchased again below market and gain recorded. Short sales are happening more regularly and this trend will really increase as the situation worsens. The banks already looses an average of 35-50% on the average foreclosure all said and done. So, have the markets corrected? Have we hit the bottom? Is the worse over? These questions are answered with rage by Mr. Mortgage of Implode o Meter weekly. Although not a economics major or Wall Street expert or fed Chairman or a polished house speaker, the guy is on the money most of the time. Anyone want a link? Also stay tuned to DS.News.com for daily review. I was turned on to that site by a Wall Street associate and it's a real nice daily summary of what's going on. I am trying to locate a very good pie chart a Wall Street associate has sent me a few weeks ago.

We are in a flat period temporarily by comparison of what’s to come reset wise! AND as Charles mentioned the ALT-A crisis is going to be absolutely INSANE! 2009 will be worse than 09 and the hugest pain will be felt in 2010!

The Fed and Bank Chairman and our skeet shootin emporer have actually managed to manipulate the banks and investors into being more cooperative in regard to loan workouts. FHA has stepped in with a TINY teaser crutch and congress continues to micro manage wall street and the American Citizens. This is all creating an illusion, a FALSE consumer CONFIDENCE if you will.

I keep hearing people saying “our market has almost corrected” “the worse is over” “home sales are up”… BS! Can you say BAND-AIDE and ILLUSION?

Folks, default are continuing to raise the previous record each month and there is certainly no slow down of REO inventory. The banks are thinking just maybe there will be a bail out and that’s just NOT going to happen, unless Hugo Chavez moves in or China calls all of our loans due (not really funny) and forecloses on us, taking over total control.

Face it, when banks end up with a property at the trustee sale, they RECORD that as a sale and often time at below market. Then the properties in many cases sit on the market and go down in price each month. Finally they will be purchased again below market and gain recorded. Short sales are happening more regularly and this trend will really increase as the situation worsens. The banks already looses an average of 35-50% on the average foreclosure all said and done.

So, have the markets corrected? Have we hit the bottom? Is the worse over? These questions are answered with rage by Mr. Mortgage of Implode o Meter weekly. Although not a economics major or Wall Street expert or fed Chairman or a polished house speaker, the guy is on the money most of the time. Anyone want a link?

Also stay tuned to DS.News.com for daily review. I was turned on to that site by a Wall Street associate and it’s a real nice daily summary of what’s going on.

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