here's scary 60 minutes segment on mortgages

watch it and it will scare you silly


http://www.cbsnews.com/video/watch/?id=4668112n

Wow, no kidding. What percentage of loans in sowal do you think are alt-a or option arm? Gonna be an interesting 2009, to say the least.

Wow, no kidding. What percentage of loans in sowal do you think are alt-a or option arm? Gonna be an interesting 2009, to say the least.

I seem to remember an early 30A Shopper Chart about this very issue that looked similar to the one they showed on 60 minutes.

I seem to remember an early 30A Shopper Chart about this very issue that looked similar to the one they showed on 60 minutes.

I liked the story and thought the same thing about the 30A chart.

I would bet that many of the second and "investment" homes in sowal will be affected by this. I'm sure during the boom people didn't worry about when the p/i payments hit since they were convinced of selling and making a profit.

Leverage is an investulator's best friend on the way up and the investulator's screaming, bloody peril on the way down. Clearly a large majority of properties in Florida were purchased as investments with little-to-no money down and at the lowest interest rates possible (read: Option Arms). The lower-income neighborhood properties were financed with the subprime slime--which is currently running its course. Most of the "upscale" neighborhoods were financed with Alt-A Option Arms which is what this piece discusses. There's more to come.