Wednesday, August 08, 2007
Alt-A Reality In CA
BTW, I know my neighbors very well. I live in a culdesac with 6 houses and I refinanced all of them in the last 5 years. 1 full doc, non fixed, 5 alt a. Average value in 2005 was 1,100,000. The house in the court behind me sits on the market for 1 year and currently is listed at 850k. The foreclosure up the street (all same development) got sold as REO at 729k. You tell me, where do I put these people when they adjust?In the short sale line?
The losses on Alt-A in several areas are going to make the subprime losses look like a penny-ante game, and the reason people are having problem with jumbos is because of that. You really need at least 30% down on those right now, and in a few areas, you need 40%.