A question I keep getting is what will happen with the market? Like I have a crystal ball ;-)
That said, here are some thoughts for discussion:
1. There are over $1 Trillion in interest-only and adjustable rate mortgages all coming due for their payment adjustments in 2007! The FED estimates that the payment increases will be between 25% and 35% or more. What affect will that have on the economy nationally?
2. Foreclosures are already up over 43% in the last quarter of 2006! Those percentages are expected to go up another 10-15% as well.
3. Subprime and conventional lenders are closing their doors right and left already. There is anticipated that as many as 35% of the lenders in business in 2006 won't be by the end of 2007.
4. Average marketing time in most major markets across the country has gone from under 30 days to over 100 days in the beginning of 2007.
So what will all this mean for the economy from here on out? What will that do for the REO inventory due to foreclosures and delinquencies in the coming months and years?
Here is a big and even risky question: Are the lenders at least partially liable for the financial ruin for so many families in the coming months and years? We saw class action suits in the tobacco and drug companies... might we possibly see the same thing happen in the mortgage banking business? Hmmmm...
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