The Iceberg Loometh

October 29, 2011

Housing Market Stats, Mortgages

Remember my recent analogy about the situation with Apple?  Well, I can’t help but pat myself on the back for such an incredible selection of arbitrary numbers.

I said that certain events would take place if apple were to make a mistake and put 10 million IPADS into the general market in a short period of time.

Well, Amherst Securities Group has just released a study that says that we should expect another 10.4 million mortgages to default in the next 24 months.

Most analysts’ make the foolish assumption that the housing problem is only limited to loans which are currently non-performing (or past due 60-days or more).

Such borrowers are very likely to eventually lose their homes.  However, the housing problem also has a lot to do with loans having a compromised pay history…these loans have been re-defaulting at a very fast rate.

Now, investors are really wringing their hands right now hoping that the government gives them an incredible incentive to buy up the inventory.

The only problem is that the government is trying to figure out a way to become the renter and nationalize the inventory.  Don’t believe me?

Just take a look at some of the proposals that have been put on the table.  The one that still has a space on the table is the government rental program.

If this happens, you better run for the hills folks, because you are in the midst of nationalization. In any case, think of the economy like the Titanic.  They said it could never be sunk.

It was too big to fail. But at the end of the day, Captain Smith did not see the actual size of the iceberg that ripped into the hull of the big ship below the ballast line.

We have a big one coming folks and the government can see it, but have no way to change course.

And it’s a big, big iceberg that can easily sink us all…

Appraisal Source is a New York based residential real estate appraisal firm. If you need a highly qualified New York City or Long Island home appraiser to provide an independent real estate appraisal for any reason, they can be of service to you.

Here’s the original article…10 million more mortgages set to default, expert says

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