I've been hearing about this rather 'hush-hush' news story that Reuters news group is finally reporting on.
The mortgage market is in the process of starting to literally implode.
The reason is because of the insane Adjustable Rate Mortgages that people have gotten themselves into. Those "adjustable rates" are getting ready to adjust upward... and the interest rates are going to go through the roof on folks.
Some are going to find themselves having to pay as much as 5 to 10 times their original monthly payment... five to ten times...
These ARMs are a scam and those buying into them are getting ready to reap the wind.
By Lisa Lambert
WASHINGTON (Reuters) - The federal government and states are girding themselves for the next foreclosure crisis in the country's housing downturn: payment option adjustable rate mortgages that are beginning to reset.
"Payment option ARMs are about to explode," Iowa Attorney General Tom Miller said after a Thursday meeting with members of President Barack Obama's administration to discuss ways to combat mortgage scams.
"That's the next round of potential foreclosures in our country," he said.
Option-ARMs are now considered among the riskiest offered during the recent housing boom and have left many borrowers owing more than their homes are worth. These "underwater" mortgages have been a driving force behind rising defaults and mounting foreclosures.
In Arizona, 128,000 of those mortgages will reset over the the next year and many have started to adjust this month, the state's attorney general, Terry Goddard, told Reuters after the meeting.
"It's the other shoe," he said. "I can't say it's waiting to drop. It's dropping now." ..... "Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they "threaten a much greater hit to the consumer than the subprimes...."
Get ready America, great sorrow in rushing over the horizon... and this is only one aspect of the coming financial crisis facing those less able to deal with financial crisis.
Oh... and there will be those waiting to scoop up these failed mortgages for pennies on the dollar... and this was known to be the result when the lenders began issuing the Adjustable Rate Mortgages... they knew... it was perpetrated on purpose... with intent...
Consider and Ponder.
xtnyoda, shalomed
The mortgage market is in the process of starting to literally implode.
The reason is because of the insane Adjustable Rate Mortgages that people have gotten themselves into. Those "adjustable rates" are getting ready to adjust upward... and the interest rates are going to go through the roof on folks.
Some are going to find themselves having to pay as much as 5 to 10 times their original monthly payment... five to ten times...
These ARMs are a scam and those buying into them are getting ready to reap the wind.
By Lisa Lambert
WASHINGTON (Reuters) - The federal government and states are girding themselves for the next foreclosure crisis in the country's housing downturn: payment option adjustable rate mortgages that are beginning to reset.
"Payment option ARMs are about to explode," Iowa Attorney General Tom Miller said after a Thursday meeting with members of President Barack Obama's administration to discuss ways to combat mortgage scams.
"That's the next round of potential foreclosures in our country," he said.
Option-ARMs are now considered among the riskiest offered during the recent housing boom and have left many borrowers owing more than their homes are worth. These "underwater" mortgages have been a driving force behind rising defaults and mounting foreclosures.
In Arizona, 128,000 of those mortgages will reset over the the next year and many have started to adjust this month, the state's attorney general, Terry Goddard, told Reuters after the meeting.
"It's the other shoe," he said. "I can't say it's waiting to drop. It's dropping now." ..... "Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they "threaten a much greater hit to the consumer than the subprimes...."
Get ready America, great sorrow in rushing over the horizon... and this is only one aspect of the coming financial crisis facing those less able to deal with financial crisis.
Oh... and there will be those waiting to scoop up these failed mortgages for pennies on the dollar... and this was known to be the result when the lenders began issuing the Adjustable Rate Mortgages... they knew... it was perpetrated on purpose... with intent...
Consider and Ponder.
xtnyoda, shalomed
Labels: stimulus
posted by XtnYoda at 9:42 PM
0 Comments:
Post a Comment
<< Home