Hi Everyone,
Here’s the updated Credit Suisse chart showing the wave of subprime, Alt-A, and prime ARMS set to adjust through 2012. Click on the image for a larger view.
There was a question about repaying the leftover debt from a short sale and how that impacts a person’s credit score. Here is one answer from Mortgage Daily News:
The credit implications for a short sale are very different for those voluntarily selling their property and those forced into foreclosure. If the property owner voluntarily selling the property can pay off the amount owed out of pocket by using assets already owned there should be no credit implications. If the property owner needs to take a new loan from a bank in order to make up the difference from the short sale, then the credit implications would be the same as the credit implications of taking out any loan. In fact, sometimes taking out a loan can improve a credit rating. Whether the new loan raises a credit score or lowers a credit score, most likely the new credit score will not be drastically different than the property owner’s credit score before the short sale
Here is a link to the FICO website which explains credit scores in more depth.
Thanks for a fun class!