Mortage Pain: The Next Shoe

This great article from Housing Wire brings attention to some early action unfolding in the Alt-A mortgage wave. As discussed in an earlier post, ‘Read this Chart.. THIS. AIN’T. OVER.’, another huge wave of mortgage vintage is entering the reset phase, at a time when declining home values are putting may of these recent home buyers under water on their mortgages:

24.1 percent of borrowers estimated to be at between 100 and 110 percent of current LTV had defaulted on their mortgages by the end of Sept.; for borrowers over 110 percent current LTV, that number reached an astonishing 32.8 percent, or roughly 1 in three.