Credit Weakness Spreads from Subprime to Alt A to Jumbo

mortgagemess at 21:41 2009-01-28 said:

A good friend of mine just lost his job..he contacted Indymac to get a loan modification..he did the right thing bought within his means(which was a $975K house put 20% down)..the investor that bought his loan is denying him the modification. According to the rep he spoke to at Indymac FDIC, it is because the investor says he still has equity in his home...which is true..My friend's response..."If this guy won't give me my modification because I lost my job and am trying to do the right thing..them trust me..if he gets this house back, he won't have any equity in it."

Now, I didn't elaborate on what that meant, but I get the picture..so what is going to happen is that the same thing that happened to the 300K houses that ended up with 50-150K worth of damage, is that banks and investors will be getting back homes in the luxury price range with $300-500K plus worth of damage...there are going to be some interesting headlines in the coming months! Permalink