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Alt-a Loans - What Are They?


renterbob

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Guest KingCharles1st

NEGATIVE EQUITY IS THE LARGEST CONTRIBUTOR TO LOAN DEFAULT

well I just learnt something- and its sooo obvious- its NOT that they cant meet repayments necessarily

And we are rapidly moving into a huge NEQ situation in the UK

Edited by KingCharles1st
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NEGATIVE EQUITY IS THE LARGEST CONTRIBUTOR TO LOAN DEFAULT

well I just learnt something- and its sooo obvious- its NOT that they cant meet repayments necessarily

And we are rapidly moving into a huge NEQ situation in the UK

yes I knew a few people last time round who had no problem paying their mortgages , but were so sick of the value in their homes decreasing that they just sent back their keys and walked away. I do know that one of them was chased up many years later by the bank for £16,000 owed and he agreed to settle with them for £8,000.

This time round the figures owed will be much bigger and I guess the amount of people who walk away will be far higher.

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soon to be Alt-a Loans - Where Are They?

they are a type of loan, better risk than Sub prime but not prime, sold heavily from about 2 years ago with 2 year teaser rates. They are larger in size than sub prime in general, and there are more of them.

They start there renewal time in ernest from about now and peak in about mid 2009.

Course, in the US, if the renewals are too onerous and they are in Neg Eq, it pays the mortgage holder to walk and jingle mail.

So, in essence, its the sub prime defaults all over again, only bigger and higher up the ratings league.

IMHO, these are the reasons for the urgency of the bailout package.... They KNOW whats about to hit.

700bn? its not enough. not by a long chalk.

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Guest Shedfish
they are a type of loan, better risk than Sub prime but not prime, sold heavily from about 2 years ago with 2 year teaser rates. They are larger in size than sub prime in general, and there are more of them.

They start there renewal time in ernest from about now and peak in about mid 2009.

Course, in the US, if the renewals are too onerous and they are in Neg Eq, it pays the mortgage holder to walk and jingle mail.

So, in essence, its the sub prime defaults all over again, only bigger and higher up the ratings league.

i seen em. i think you missed the allusion to an anticipated future difficulty to quantify them, etc. (IBID/ID)

IMHO, these are the reasons for the urgency of the bailout package.... They KNOW whats about to hit.

700bn? its not enough. not by a long chalk.

totally agree. nowhere near.

first it was spitting in the wind, then pissing in a gale, now the hurricane is here they're rooting round for the Vigrex

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they are a type of loan, better risk than Sub prime but not prime, sold heavily from about 2 years ago with 2 year teaser rates. They are larger in size than sub prime in general, and there are more of them.

They start there renewal time in ernest from about now and peak in about mid 2009.

Course, in the US, if the renewals are too onerous and they are in Neg Eq, it pays the mortgage holder to walk and jingle mail.

So, in essence, its the sub prime defaults all over again, only bigger and higher up the ratings league.

IMHO, these are the reasons for the urgency of the bailout package.... They KNOW whats about to hit.

700bn? its not enough. not by a long chalk.

Frankly, the video sent shivers up my spine.

Do we know who has the 'interesting' alt-a loan books in the UK?

700 Trillion enough?

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Frankly, the video sent shivers up my spine.

Do we know who has the 'interesting' alt-a loan books in the UK?

700 Trillion enough?

There is no sub prime in the UK.

No doubt there is no Alt-A in the Uk either.

In fact, every mortgage ever done in the Uk is fully regulated and overseen by the Regulators. We know this because fines to erant brokers are high and a respected deterrant to wrong doers.

Lucky old UK.

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There is no sub prime in the UK.

No doubt there is no Alt-A in the Uk either.

In fact, every mortgage ever done in the Uk is fully regulated and overseen by the Regulators. We know this because fines to erant brokers are high and a respected deterrant to wrong doers.

Lucky old UK.

:lol:

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As it was explained to me:

Alt a = sh1t product, good customer

Subprime = sh1t product, sh1t customer

Succint and too true.

On that Andrew Neil special on News 24 the other night one of the guys said that Alt-A was the same as subprime exceet that the borrower lies :lol:

LIAR LOANS anyone?

Are the people* who got us into this mess, really the people to sort it out?

*crooks, criminals, incompetents

Edited by tinker
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