Posted by Teddog/CO on 9/22/06 7:32am
Msg #147694

RE:Foreclosures

Some interesting reading in Business Week.
http://www.businessweek.com/investor/content/aug2006/pi20060810_284614.htm

Reply by PJM/MI on 9/22/06 7:39am
Msg #147701

I do "inspections" for a company that does nothing but foreclosures. I have done inspections on over 20 homes I closed the re-fi's on in the past couple of years.
How sad!
I'm getting alot of repeat business for the ARMS I closed in the past couple years, too.
ARMS.. cost an ARM and a LEG!

Reply by Stamper_WI on 9/22/06 7:42am
Msg #147702

I had 2 cancellations this week because the borrowers were going for a fixed rate and they got ARM's.

Reply by Teddog/CO on 9/22/06 8:08am
Msg #147713

Stamper

The up-side of that is at least you didn't drag your butt all the way to their house, then get slammed. Yuk! It's Friday , trust me you'll get three more to make-up for those two.

You have a great week-end Stamper!!

Reply by Teddog/CO on 9/22/06 8:01am
Msg #147710

PJM/MI

It's really sad is'nt it. I've had some that I don't even have to check Mapquest to find the address-I still remember their names. Out with ARMS and in with fixed rates and Refi , Refi. The one I have this morning at 8am is 10 mins away and this is the 3rd refi for them. Did the first 2 for them (they said they will have the coffee on.) At least we get to meet some very nice people. I just feel bad what it's costing the bwrs. Ouch!

I've seen some really creative loans lately.

Reply by Nate_MN on 9/22/06 8:58am
Msg #147726

I don't think the reset in rates will have an immediate impact on foreclosures. Most foreclosures are caused by job loss and medical problems, not rate resets. With fixed rates still hovering around 6% people will just be forced to refi.(good for signing agents) This of course will be cost many a few thousand dollars in closing costs, and perhaps there rate will jump a few percent. The bigger problem in my mind is the long-term drag this could have on the economy. If people are jumping from a 5% arm, to a 6.5% fixed it's not going to put them under, but it's going to tighten their budget. Less money being spent in the economy could cause the economy to weaken and then you will see some job loss, and that is when you will finally start to see the foreclosures that were caused by ARM's.