Sep 13 2009
Interest Only Mortgage Time Bomb: $71 billion in Loans will Reset in next 12 Months. Total Loans Outstanding at $908 Billion. Average Balance of $324,000. Median U.S. Home Price $178,000.
Interest only (IO) loans seemed like a viable mortgage option when home prices were appreciating on a double-digit basis every year. The interest only loan allowed borrowers the option of making no principal payments for 5, 7, or even 10 years. Now why would someone not make any principal payment for such a long time? [...]
Aug 12 2009
Commercial Real Estate, Construction and Finance Employment: How Commercial Real Estate will drag the California Economy Deeper into Recession. 32 Percent of California Construction Jobs Gone.
California is heavily dependent on real estate. That should be of little surprise to you but many have a hard time understanding how devastating the housing crash is to employment in various sectors. California for 30 years relied on housing even though in many years, it was in a bubble. That is why in 2009 [...]
