March 14, 2007

Only 7% of loans in San Jose metro area are subprime

San Jose Mercury News – Valley may be insulated from mortgage morass
About 7 percent of all outstanding mortgages in the San Jose metropolitan area in December 2006 were subprime loans, according to estimates from First American LoanPerformance in San Francisco. Of those borrowers, nearly 9 percent were more than 60 days late in their payments. But nationally, about 15 percent of mortgages outstanding at the end of last year were subprime, and about 12 percent of those borrowers were delinquent in their payments.

Phew. Only 7%. That’s nothing!

Or is it?

Click here to post a comment -- Posted by: burbed @ 5:45 pm

No Responses to “Only 7% of loans in San Jose metro area are subprime”

  1. smokey treat Says:

    Homeowners like Juanita Wallace may be affected. Wallace is an 80-year-old retired Gilroy homeowner who said she’s not sure her current loan was subprime, because she says she has excellent credit. But her loan has many characteristics of those subprime borrowers typically get, including a hefty penalty if she refinances within the first two years; and a negative-amortization “teaser” rate of 1.75 percent that’s causing her loan balance to grow with each passing month.

    Her home of 35 years would have been paid for by now if she had not refinanced three times to remodel and pay debts.

    “Here I ended up owing $590,000 on it,” she said with a rueful laugh.

    Wow, that’s gotta be a special house in a special location. I’m thinking Mr. Williams is glad/wishing that he’s dead.

  2. jo jo Says:

    Just think i should be adopted by Mrs Wallace and then I could inherit her loan and continue the payments and you know Gilroy is PRIME baby. It only goes up. oops i mean viagara damn i’m so confused LMFAO

  3. Norcalboomer Says:

    That’s great!! 80 year olds with 500K plus mortgages!! Gilroy real estate is prime!! It can only go up !! Everyone wants to live there!!! WTF has happened to this country???

  4. ejamie Says:

    So… that’s where the spring bounce is going to come from!

    Sell all the existing inventory to 80-year olds–preferebly ones who have dimentia or otherwise are incapacitated–then watch as inventory is squeezed and prices rocket up up UP ….

    … until 6 months later when the buyer expires.

    Rinse.

    Repeat.

  5. UK Home Mortgages Says:

    Only 7% of home mortgage are sub-prime! Wow.


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