Saturday, August 14, 2010

PLS in the next chart

[mEDITate-OR:
not see the significance of that portion of the REO spectrum...

What you NEED to appreciate is that, according to a recent article/study, over 80% of all those bad subprime and ARM loans that were issued between 03 and 07 were/are in trouble = severely behind in monthly payments,    substantially underwater, about to be or in foreclosure (part of the estimated 1 Million this year), in bankruptcy, or trying to do a short sale.

As you also know, 50% of all RE loans between 03 & 07 were non-agency loans, in the sand states, made by Countrywide/BoA, WAMU/Chase, Wichovia/Wells and New Century/ BK

The point of the article is that MOST of those bad ARMs - the resets we all are worrying about - do NOT exist anymore. There will BE no flood of reset this & next year, and therefore no flood of foreclosures from them.

That IS really good news, if tis true.
Not for you personally, but for U.S. and especially those in the sand states.
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