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Headwinds for Financials and RE Funds : HELOC resetting
"Fifty-six percent of the 3.3 million Home Equity Lines of Credit potentially resetting with higher, fully amortizing monthly payments from 2015 to 2018 are on properties that are seriously underwater, meaning the combined loan to value ratio of all outstanding loans secured by the property is 125 percent or higher, according to the report."
and,
"We are entering a period of higher risk over the next four years when it comes to resetting bubble-era HELOCs - especially given slowing home price appreciation that offers underwater homeowners less hope of recovering their equity in the short term."
Comments
Most real estate funds have been on a very bumpy ride for the past several weeks, with serious (1%) daily price swings.