How many "bad loans" left in the system

Question

Everyone seems to agree that in order to put this sub-prime mortgage mess behind us and for it to turn around, that we need to get all the bad loans out of the system. So where are we on the continuum? Do we have a greater number ahead of us than we have behind us? Does anyone have hard numbers or data that shows where we are? Are most the ARMs adjusting now or already adjusted? Or is the biggest number in '09 or '10?

Answer 1

We probably won't be seeing the true bottom of current housing crisis until the end of this year.

All the analyst I follow are calling for a recovery about mid 09'

Many people that once had their homes on the market for sale have since pulled them off due to the record number of foreclosures coming about. So if you see a drop in inventory it is for that reason.

The current inventory levels are hovering around 18 months. We need to get that number down to 6 months before people can sell again and home prices begin to recover.