60 Minutes

The 60 Minutes episode brought up “Alt A” and “Option Arm” and the counterparts in the commercial loan realm. Their expert Whitney Tilson believes that there is going to be a second wave of foreclosures and defaults in the next three to five years. He also believe that it will be just as big as or bigger than the mess where are already in.

I Agree

If his prediction is true then what does that mean for investors? Will there be plenty of great properties around and no way to buy them? Having once pedaled these types of loans myself, I agree with Tilson.

Find A Way Out

They were never meant to be long term loans. If investors and home owners cannot find a way to get out of them they will soon be overwhelmed and fall into bankrupted and foreclosures.

O.K. I have a lot more to say about this but I would also like to get some more ideas about what should be done. If this is really going to happen and what can we do to stop it. If it can’t be stop how to we pick up these properties as investors. Alright enjoy

http://www.cbsnews.com/video/watch/?id=4668112n

The second wave will really have a lot to do with what happens to real estate values. If they go up to more than the people bought there houses for, there probably won’t be a lot of foreclosures. If prices remain flat, then this look out for the second wave.