curley55

The Housing Problem: What Inning is It?

To determine the inning lets look at some of the facts. The sub prime mess started a long time ago. Last August it came to a head when a lot of lenders and their funding dried up for sub prime mortgages. Most sub prime mortgages are 3 year notes. A lot of the sub prime people will default on their mortgages in the first 12 months. The ones who pay will have to refinance when their notes mature. Either you pay and refianace or you do not pay and go into default. Pretty simple.

Since very few new sub prime mortgages are being made I suspect the sub prime mess will be over by August 2008. Foreclosures will linger a little longer and perhaps by spring 2009 we will see declining foreclosures and a more stable real estate market. Some states that are not growing jobs and population will still have problems but most of the country should be ok.