More Than $50B in Adjustable-Rate Mortages to Reset in October 2007
An article entitled, “Mortgage Resets: Record Bill Coming Due,” was published today on the CNN.com website. It provides great insight as to how the real estate market can go from bad to worse in upcoming months. Hybrid adjustable-rate mortgages, or ARMs, were a popular financing option for homebuyers in 2004 and 2005. Many of these homeowners will see an increase in their mortgage payment of over 30 percent once those resets occur. That is a significant increase which could lead to a tidal wave of late payments and, eventually, foreclosure for a large number of homeowners.