Re: California Judicial/Non Judicial concern
Posted by Jim V on January 27, 2009 at 20:20:45:
In Reply to: Re: California Judicial/Non Judicial concern
Posted by Mike on January 27, 2009 at 11:13:40:Loan pricing (interest rates) have always supposed to be indicative of the risk involved in granting that loan which is why a junior lien carries a higher interest rate than a better secured senior lien. From what you've said, I think you shouldn't have too much concern.
There's been so much change in the lending environment over the last few years I'm not sure everything has played out yet. Specifically in CA, many areas had property values way above area affordability, so there was widespread use of Alt-A type loans with very little borrower documentation. One of the lingering questions I have is WHEN the lenders will start questioning the validity of loan documentation. There's an awful lot of loans out there with borrower signatures attesting to the validity of the financial information provided, IF lenders start looking at that, I think the judicial/non-judicial issue is going to become very, very different. That's an opinion, and not reflective of today's conditions.
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