This is not surprising. Alt-A loans were a very complex mortgage affordability product were you could pick your payment; usually 30-year fixed, interest only, or negative amortization payment. Then on top of that you these loans had teaser rates and variable interest rates. Most of time the borrower picked the negative amortization payment and your balance would actually increase until you hit a ceiling. Once you hit that ceiling the loan would recast in a fix rate mortgage and borrow usually couldn't afford that payment. But there were so many types of these loans products and I'm just generalizing.
According to the market review, 10.5% of Alt-A loans that were current six months ago are now delinquent. Most of those have an increased loan-to-value ratio (between 140 and 160), meaning a higher risk attached to them.
I would click on the article and find your state.
Approximately 40% of Alt-A loans originated in Nevada between 2004 and 2008 are more than 60-days delinquent or in foreclosure. Nevada is topped only by Florida, which has a reported 46.4% of issued Alt-A loans 60-days or more delinquent or in foreclosure. Twenty states have Alt-A delinquencies exceeding 25%.
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