Dafaults on US mortgages up already...

[Toma]

and expected to go higher....
http://www.marketwatch.com/news/story/hsbcs-bad-debt-charge-top-10/story.aspx?guid=%7B8FE57E15%2D3548%2D4816%2DBA2F%2D2DC8B57DFE2F%7D

[vadeit]

Sweet... getting transfered down south is looking better and better.

[hjr]

how far behind are we?

[Super_Geo]

Rich --> Richer
Poor --> Poorer

Keep on voting Republican, you silly uneducated yanks :rolleyes:

[Redlyne_mr2]

Been happening in Cali for quite some time

[vadeit]

Originally posted by Super_Geo
Rich --> Richer
Poor --> Poorer

Keep on voting Republican, you silly uneducated yanks :rolleyes:

People buying houses and a wack load of consumer goods that they cannot afford is the problem, not who they vote for. Living beyond ones means is the problem. I remember reading an article a while back that the consumer debt load in the US is so high it is scary. As soon as interest rates rise, shit like this happens.

[Xtrema]

Originally posted by vadeit


People buying houses and a wack load of consumer goods that they cannot afford is the problem, not who they vote for. Living beyond ones means is the problem. I remember reading an article a while back that the consumer debt load in the US is so high it is scary. As soon as interest rates rise, shit like this happens.

Werd.

People refinance house for BMW and unnecessary renos and other personal crap. Then house market go south, you own more than you're worth, lose your job or less business and you're fucked.

[Oz-]

I can't find the document for it, but from what I understand is that the US government was subsidizing a lot of mortgages for the past few years. Basically giving them interest free for the first 5 years of the loan, with it ending in 2007. Now more then a few of those people have higher payments without a real increase in their income from the start of the mortgage.

Someone that might be more familiar with the US mortgage industry could fill in the blanks a bit more.

This doesn't surprise me at all, but the factor I described above might be the difference between the 2 housing markets. :dunno:

[tentacles]

I think you're talking about Adjustable Rate Mortgages (ARMs) where for the first period you get a choice of paying regular(interest/principle) Interest Only, or even less (basically megative amortization). 2007 is the time when a lot of them "reset", so people who were paying option #3 now have to make real payments, which are typically 3x what they were paying before. Guys who make $60k/year suddenly have to pay $7k/month mortgage.

I am hoping there's going to be some good investment oppurtunities in California in the next few years, California actually had good fundamentals, i.e. I'd actually like to live somwhere I can drive my car all year with summer tires, and not worry about rocks the size of my head smashing my winshield and bumper, unlike Calgary.

..and pick up a repo'ed M3 or RS4 while I'm at it too. :clap: