Posted by 101livescan on 7/21/08 2:13pm
Msg #256103

Interesting Article about Bank Woes

http://www.sacbee.com/142/story/1091690.html

Banks are a long way from being out of the woods...all those option arm (ARMAGEDDON) loans that borrowers paid heavily to get into with origination fees and points as well as with prepayment penalties are coming back to hit them from behind when they are really down.

Reply by jba/fl on 7/21/08 2:53pm
Msg #256113

I am guessing that a lot of interest only loans will be here on these lists soon - a lot of them were 5-10 years, and on inflated appraisals too. Market correction will put a lot of people behind the 8 ball.

Reply by 101livescan on 7/21/08 5:45pm
Msg #256169

I actually have a 10-year interest only loan, however, I bought under the market. Two other horse ranches near to mine sold for $1m six months before, mine was a distress sale, couple could hardly wait to get away from each other, I paid $580K, so have some wiggle room, but I'll sell and move to smaller property inside of 10 years. There are a lot of people whom I signed up who bought on inflated values, 125 to 150 percent over. I did a signing this morning on a property for $155K near the beach. People are walking away from their mortgages on the same street at $350K.

Reply by jba/fl on 7/21/08 6:40pm
Msg #256175

You know, as do many of us, that there is a place for some of these loans, but some was just plain greed w/no thought of consequences, some hopeful that the crystal ball they were using would never crack or fog over and some just got 'sold'.

Every time I drive around town I pass someplace that I signed during the heyday, and wonder if they are still there. . . knowing the risks they were taking for so little (in the long run) Some did not make it I've discovered. Sad.

Reply by MistarellaFL on 7/21/08 6:44pm
Msg #256177

Some did not make it I've discovered

Strange here in SW FL...my little street, where I closed about 15 in 3 years, is a ghost street.
50% are either in foreclosure or pre-foreclosure.
One house is set for auction, the bid starting at $1000 (yep, one thousand dollars).
I think almost all are in that 50%.
Very sad, indeed.