Mortgage Law, Mortgage Modification, and Foreclosure: The Next Wave of Foreclosures Coming...
Hi Readers! By now I assume that anyone who has made it to this website knows something about the sub-prime mortgage meltdown. There has been constant news coverage, "government action", and of course most people have felt the whole economy downturn in its wake. However, did you know that there is going to be another wave of foreclosures that could rival or even exceed the ones related to the sub-rime meltdown?
The mortgages I am talking about are called option ARM mortgages. They represent over $230 Billion in mortgage dollars and roughly 564,000 in mortgages held. The main attribute of these ARMs is that borrowers can opt to pay less than their monthly balance due and the difference is tacked on to the outstanding loan balance. However, these ARMs have triggers that reset to a new interest rate based on either a set time frame, or when debt exceeds some cap above the loan's value. When rates go up, and they will (see earlier blog "Mortgage Interest Rate to Skyrocket soon.."), these triggers will activate and we are going to see another wave of foreclosures.
The difference here is that these ARMs will be unfolding over a longer period of time compared to the sub-prime ARMs. In other words, these is still time to do something about it! Call for a free consultation to see what options might be best for you. Believe me, we can't help everybody who calls; but we usually can point you in the right direction at least. C U next time!
