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(The Year 2012 In Review)
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|User Info||And So It Begins - The NEXT Implosion; entered at 2008-08-06 10:36:57|
Ticker says about Option ARM: "often there was no or little down payment". As I recall, when trying to do a stated-income cash-out option ARM deal for a couple of retirees living on HELOC draws, the LTV World Savings would allow was less than 80% and they backed off the loan amount from the 90% LTV requested. So some equity was required. And I recall the reset was when the loan balance grew to 125% of the original amount. Even so, what "equity" there was 3 years ago is no more. And yes it is a time bomb. People used to see the 'get a 1.25% mortgage' signs stapled to telephone poles and ask why I was charging them 5.25% for a jumbo 5/1.