Not Surprising
The mortgage mess is spreading to the prime market. People with good credits, like subprime borrowers, got caught up in the frenzy to buy homes and took out all sorts of crazy loans just to buy a bigger house. The piggy-back loans are defaulting and the negative amortization loans are defaulting. If a house payment is too much and the rational for a crazy loan was price appreciation for future refinancing it does not matter whether you are a prime or subprime borrower. Either way a borrower is in trouble and likely to walk away when values dip and equity is eliminated.
Wednesday, July 25, 2007
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