July 15, 2024

San Diego condos"The peak pinch year will be 2008," Christopher Cagan, research director at First American CoreLogic, says of a coming surge in borrowers facing resets in their adjustable rate mortgages. He projects 1.1 million reset-related defaults over the next five years, and an additional 70,000 for every 1 percent fall in home prices, especially in places like San Diego where ARMs represented 40 percent of all new loans issued last year. "The more prices fall, the less equity [homeowners] have and the more trouble they'll have refinancing," he says.[tags]mortgage defaults,foreclosures,housing market,real estate market,housing bubble[/tags]  San Diego real estate agent  San Diego foreclosures

4 thoughts on “1.1 Million Mortgage Defaults Projected

  1. So if I was a real estate agent and someone wanted me to list a home at $894, I could just tell them “there are 6 people in the area that can afford your home.. I called them.. they aren’t interested.. How about you drop to $794K and I’ll call the 10 people that could swing that payment?”

    Pop goes the bubble…
    San Diego bail bonds

Comments are closed.