The end nears for Scottsdale

Alt-A mortgage defaults climbing sky-high

Contrary to popular belief, most Scottsdale mortgages are not subprime. Subprime mortgages are for people with bad credit. In Scottsdale, credit is everything. It's the Holy Grail. Scottsdale people strive to have good credit so they can continue getting more BMW leases, open more and more credit cards, get loans from the furniture store, and so on.

Alt-A loans, however, do constitute the vast majority of Scottsdale mortgages (these are the low-doc, no-doc loans where you don’t have to prove your income, etc). And guess what - now that the subprime debacle has taken place, Alt-A is next ... Alt-A delinquencies are as high as 17% and climbing.

Goodbye, Scottsdale phonies. You should have "bought" houses you can afford.

Comments

[Rick]

Found this on a another forum. Thought everyone might find this amusing.

http://www.tickerforum.org/cgi-ticker/akcs-www?post=45606

"Just talked to the Scottsdale City Manager" "This guy is my landlord and he is showing my unit tomorrow. We talked about the economy and he was completely freaked out about how they are cutting the budget numbers for the city. He said he can't believe the reduction in tax revenues and I told him he may want to add another 10% to his cuts.
We talked about the Federal economic numbers and he was confused about how the government can show such weak numbers when gas costs $4 a gallon.
He reiterated how bad things are and totally understands that they will be getting much worse in the months to come. He told me that he is really worried about what can happen after the election. I told him to budget very conservative numbers because it will most likely be worse then he may get from the media or other sources.
This is coming from a city manager of a very affluent area."

[max]

I just ran across this site after searching "phoenix sucks". I spent two years of my life there and i will never get them back. The best thing that came out of living in that dump (the whole valley as far as im concerned) was appreciating how amazing the rest of the world is. You guys are vomiting nothing but truth on this blog. There are 4to5 fkng lanes and somehow there are always idiots cruising in the left. But thats just a snowflake on the tip of the iceberg. The massive chunk below sea-level are the people. There are not-excuse me- 'aint' any real, cool people there b/c there is nothing there that that kind of person would appreciate. The black people arent even cool.I met one and he was visiting from Atlanta! Scottsdale sucks-no doubt. IT sucks hard. But truth be told Tempe sucks. Gilbert is a great place to live if your dead. Chandler is the wannabe scottsdale (which is somehow a little better than). Glendale has a big arena!....and? And the poor grinders that live in avondale, buckeye, goodyear-i mean- why in gods name?And almost forgot about the quaint, cozy little desert oasis we all know as Mesa. And then there is phoenix settled right in the middle of this sespool of degeneracy. And I know a guy we'll call Johnny Dumbass (and there are thousands like him) who moved the ole fam to Maricopa where he grinds through a couple hours of traffic everyday to come work in "the city"....and then drives all the way back. Glad to be gone. I resided around Osborn and Thomas if you are curious but no more.Headed east 3 weeks ago. I was so happy to be out of that shithole i cried when i crossed into New Mexico. I never want to go back-ever. Sheriff Joe, Hummers, Bad MExican food in a land filled with mexicans (figure that one out),125degrees,lousy bar flies,fake chicks,fake grass (not that kind), dudes spinnin signs on corners in an uncle sam or statue of liberty outfit tweekin nutz, clubber dude, picture-in-the- mail tickets,...i gotta go to bed. thanks for the space dude.Im glad i stopped by. Cheerio.

If it sucks then leave and come to a place where the beer flows like wine. Where beautiful women instinctively flock like the salmon of Capistrano. I'm talking about a little place called Nashville,TN....or anywhere else for that matter.

[Hill]

The momentum of the real estate slowdown seems to be increasing:
http://biz.yahoo.com/ap/080609/banks_analyst_note.html?.v=1

We may be tipping over the edge into panic here. Any signs in Scottsdale?