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Foreclosure Watch 2009 as Option ARM’s Reset

Option ARM homeowners are waiting for Foreclosure. An Option ARM is a Negative Amortization Loan. With these so called Neg-Am mortgages, the borrower owes more at the end of each month if you make the minimum payment. 70 to 80% of people who got one of these loans make only the minimum payment each month. All of this has been reported in the mainstream media and in the blog-o-sphere. Most of these sub-prime mortgage loans were originated in California, Nevada and Florida. Most of the mortgage loans don’t recast (read Explode) until 2010/2011/2012 – so how can housing bottom in 2009 ? By the way, the updated the reset chart based on updated Recast dates (not the dates originally used). Looks like foreclosures continue through 2009, getting worse and worse from option ARM home owners. 

These homeowners – sorry – home debtors – sorry – transient renters are literally waiting for foreclosure. They can’t refinance – Negative Equity and they can’t make more than the minimum option ARM payment – which doesn’t even cover the interest.

Home prices continue to drop. Realtors, Government, Banks and Debtors can’t stop it. No one can. It has to happen. The whole system became corrupt and rotten. This is the reckoning. Remember too dear readers, Foreclosures lag defaults – by a minimum of ninety days but sometimes up to a year or more.   The Red Army will crush the hastily arranged liquidity defenses and mortgage loan modifications obstacles. No amount of propaganda from the National Association of Realtor’s can prevent foreclosures for millions. On the bright side – those Partisans behind the lines with caches of cash will be able to buy cheap houses – when the time is right.  > Read the original Motley Fool Article.

Posted in Mortgage News, Published Article. Tagged with , , .

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  1. Mortgage lead volumes have been rising as interest rates drop and mortgage lenders open the flood gates to refinancing. Mortgage leads are available with options for internet, live transfer, voice broadcasting and telemarketing leads in all fifty states.

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