Sub-prime, Sub-prime, Sub-prime

It seems every company now that has any problems blames "sub-prime". I am just not buying it (no pun intended).

Which do you have?

With just over 10 years to go until it's payed off.

the girl who bought my house got a sub prime mortgage

I used the (bloated) proceeds to buy a place with no mortgage

I often wonder about her and if she'll still have the house in July '08 when her loan 'resets'

Me too. Only good financial decision I ever made. I

we lived in PHX for 9 years, left 18 months ago for a MUCH smaller town

:hi:

I have a good credit score, even though I didn't put any money down. But my mortgage is only for $59,000.

...probably during the first years that Bill Clinton was at the White House as did I, actually early 1992 when Bush I was attempting to create a real bubble crisis but then refinanced when Clinton brought done interest rates in late 1993.

But I have a good credit score, and no debt other than my car. And I only made $25,000 last year. I got a good deal, the house was a foreclosure that had been sitting there for 6 months, so it was well below the appraised value.

has to do with the collateralized debt obligations and the package and sale of bundles of loans whose credit-worthiness is a complete mystery to the banks, government sponsored entities like Fannie Mae, and how many of them have made their way into money market funds, hedge funds and other vast and large instruments. No one knows what the true value of these diminishing instruments truly are--and the accounting task of coming up with a real value for them is so convoluted by the packaging and repackaging and selling reselling of these obligations that it's hard to even know who is guaranteeing them or whether they are securitized.

correct? Meaning, business's, Financial Institutions or REIT's didn't take a bunch of sub-prime loans, right?

I am just thinking that if individuals are the ones initiating them, just how many can there be? If the Financial institutions are messing with that nonsense then I can see why there would be A LOT of them.

We had a 15 year at 6% starting on a re-fi in 1994. Paid it off earlier this year.

Our FICO is just over 800, iirc. We only have a car payment, and that's for 40% of the old housepayment. And we've never been late with anything. So, we're not watching that very closely.

I'm on the BoD of a small bank. One of the perks (the directorship doesn't pay anything), is that they continuously monitor those things as a hedge against identity theft.
The Professor

and about half are estimated to go into default in the next 6 months. the powers-that-be made their money already, and are mostly happy to see the stupid americans "get what they deserve"

they averaged 100,000 that would be 1.4 trillion dollars in loans with 700 billion dollars of default. According to the Federal Housing Board the average mortgage amount right now is more than double that. It doesn't add up.