Tuesday, December 16, 2008

Survey: Self Employed Have More than 3.7 Million "Toxic" Loans.

Press release HERE from the National Association of Self Employed (NASE) says survey indicates that more than 3 million self employed have "toxic" loan types: Alt-A, Alt A ARM's, Option ARM's , or Interest Only loans.

My caveats: 1.Appears that these loan types purposely exclude subprime loans 2.Survey results also show that 70%+ of self employed respondents operated their business out of their home.

Full survey results and commentary are available on web page HERE; Key survey results:

• 22.9 % (3,709,800* At-Risk) of all self-employed business owners used risky or "toxic" mortgages or refinancing that are scheduled to "Reset".

• 19.2 % (3,110,400* At-Risk) of all self-employed business owners are at-risk of "payment shock". They do not know the monthly mortgage payment that they will be required to pay at "Reset".

• 18.4 % (2,980,800* At-Risk) of all self-employed business owners are very worried about the monthly mortgage payment due at "Reset".

• 7.9 % (1,279,800* Immediate Risk of Default) of all self-employed business owners have already missed one to three or more monthly mortgage payments at this date before expected resets in 2009 to 2012.

No comments:

Post a Comment

Post a Comment