Flex Mortgages - US Real Estate

[Mike Milovick]

Investors;

I always watch with casual interest the real estate happenings in the States. Apparently, I missed a recent segment on 60 Minutes in the last three weeks concerning "flex mortgages" in the US - an up and coming issue that apparently makes the sub-prime crisis look like small potatoes.

A lot of the information received at REIN in the last six months seems to hinge on the idea that February, 2009 will be a bottoming of US real estate valuations. Now, I am not so sure.

With these flex mortgages coming due this year(?) - and I heard there may also be a second type of garbage mortgage coming due as well - does anyone have any info in terms of the effect of these type of mortgages on valuations?

Any assistance and explanation would be really appreciated.

Mike

 

[Thomas Beyer]

QUOTE (MikeMilovick @ Jan 8 2009, 08:11 AM)
effect of these type of mortgages on valuations?


a flex-mortgage is a tool .. that can be abused.



Should bread knifes be banned from all kitchens, as I can use it to slice bread or kill someone ?



My thoughts here on US real estate valuations: http://myreinspace.com/public_forums/General_Discussion/61-9062-Inflation_-_a_Cure_all_for_US_Real_Estate_Values.html



Basically a supply shock of capital to inflate real estate values in US $s UP .. so that people feel richer and more secure .. will likely take hold sometime later in 2009 or 2010 .. as it takes a while for all that extra money supply to pump through the system ..

 

[RichardBourne]

[quote name=`MikeMilovick` date=`Jan 8 2009, 10:11 AM` post=`47336`]
Investors;

I always watch with casual interest the real estate happenings in the States. Apparently, I missed a recent segment on 60 Minutes in the last three weeks concerning "flex mortgages" in the US - an up and coming issue that apparently makes the sub-prime crisis look like small potatoes.



Here is a youtube link to that 60 Minutes story.

http://www.youtube.com/watch?v=JKlBJavw_X4&NR=1

 

[housingrental]

Video is a time waster. They`re using current default rates for extrapolation to model. Inflation will cure all.

 

[EdRenkema]

QUOTE (housingrental @ Jan 10 2009, 04:13 PM) Video is a time waster. They`re using current default rates for extrapolation to model. Inflation will cure all.

Someone last night who is NOT a RE investor said to me a statement that sums it up:
We get too much information

 

[housingrental]

I like this post
QUOTE (EdRenkema @ Jan 10 2009, 06:45 PM) Someone last night who is NOT a RE investor said to me a statement that sums it up:
We get too much information

 

[OlegP]

Fortune magazine (Special issue) is available on the shelves right now. It has a section with the Real Estate value forecasts for 100 different US markets. You might find it helpful.