Wednesday, August 5, 2009

Jumbo Loans UnderWater

The guy who cleans the toilets at Goldman Sachs just restarted the machines to buy the futures when this news story came out.

Give that man a raise!

news.yahoo.com/s/nm/20090805/bs_nm/us_usa_housing_deutschebank?sec=topStories&pos=2&asset=&ccode

"Of prime conforming loans, 41 percent will be "underwater" by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said. 46% of prime jumbo loans will be larger than their properties' value, up from 29%".

"Covering 100 U.S. metropolitan areas, Deutsche Bank in June forecast home prices would fall 14% through the first quarter of 2011, for a total drop of 41.7%".

"Of option adjustable rate mortgages which cut payments by allowing principal balances to rise 89% will be underwater in 2011, up from 77%, the report said".

"Regions suffering the worst negative equity are areas in California, Florida, Arizona, Nevada, Ohio, Michigan, Illinois, Wisconsin, Massachusetts and West Virginia. Las Vegas and parts of Florida and California will see 90 percent or more of their loans underwater by 2011, it added".

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