I was a top ranking Account Executive for New Century Mortgage, and my partner and I alone funded 100’s of loans a month for people with credit scores less than 600. Most of them at Higher LTV’s(loan to value). Most of those loans were 2 year or 3 year arms. Now thats was just us. There were a dozen other reps for New Century in my state, and thousands across the country. As a company we funded @ 60 billion last year. Now add up all of the other subprime companys, and you have trillions of dollars in loans where people are just gonna be told “forget it”.
They will be forced to let their houses go back to the bank. The people/banks holding these notes are pooping their pants....if not, they should be.
“Now in the credit and default category alone considered by accepted authorities as totaling more than USD$20 trillion in notional value.” Jim Sinclair
http://www.jsmineset.com/home.asp