News article<\/a><\/p>\nThe prediction now is that the bottom of the foreclosure and mortgage woes will not be till mid-2008. AIG reports that currently 10% of all sub-prime mortgages are 60 days or more delinquent; and an estimate 20% of all sub primes will default by 2011. Overseas lenders are having to freeze and inject funds to prop up their shaky markets. Unfortunately, the pain is spreading in the markets – driving folks to bonds. Could be some very rocky markets in the next 3-4 months.<\/p>\n
Biggest problem is if this starts badly snowballing and collapsing. The slowing\/dropping prices of homes causes people to default more than just gracefully selling\/bow out since they can’t just sell the property and cover their mortgages. The defaults cause houses to come back on the market. If enough of this happens, a surplus develops – which drives the prices down – making it more likely you’ll default on your ARM since you can’t sell your house at enough to cover your loan, which drives house prices down, which …wash, rinse, and repeat. Fortunately, this doesn’t seem to be getting out of control, but people are going to take a pounding – investors, owners, and mortgage companies. Question is, how much of a pounding.<\/p>\n","protected":false},"excerpt":{"rendered":"
As if it couldn’t sting more. It’s a painful article to read. News article The prediction now is that the bottom of the foreclosure and mortgage woes will not be till mid-2008. AIG reports that currently 10% of all sub-prime mortgages are 60 days or more delinquent; and an estimate 20% of all sub primes will default by 2011. Overseas lenders are having to freeze and inject funds to prop up their shaky markets. Unfortunately, the pain is spreading in…<\/p>\n
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