Negative Amortization Resets Loom Over Foreclosure Crisis

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 and most of these adjustable rate loans do not recast until 2010, 2011 and 2012. Will housing crisis bottom out in 2009? How could it? Read the article > Foreclosure Watch 2009 as Option ARM’s Reset

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