It really depends on how much more they can pay per month above the teaser rate. I belive that most of these folks streched so far and so hight that even a small bump up in monthly payments is going to cause problems. Without being able to refinance and get living money there will be nothing left after paying the rent..I mean mortgage.
I can’t see how prices could rally in the face of so much inventory already out there.
time will tell. If people with option arms reset and can afford the payments then I am happy that they get to keep their house…really. What I am counting on are the speculators whose intention was never really to live in a home but to make money, reset or not these homes are going back to the bank and will set future comps.
gun
