Exploding ARM Neutron Bomb

[nostradamus]

The estimated 1 million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Chairman Ben S. Bernanke. While subprime borrowers face an average increase of 8 percent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.

“We call them neutron loans because they're like a neutron bomb,'' said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. “Three years later the house is still there and the people are gone.''

Article

[patientlywaiting]

I believe the option ARMs is how middle class families were buying $500,000 to $800,000 house in San Diego.

Time will tell.

[patientlywaiting]

I believe the option ARMs is how middle class families were buying $500,000 to $800,000 house in San Diego.

Time will tell.

[patientlywaiting]

I believe the option ARMs is how middle class families were buying $500,000 to $800,000 house in San Diego.

Time will tell.

[patientlywaiting]

I believe the option ARMs is how middle class families were buying $500,000 to $800,000 house in San Diego.

Time will tell.

[patientlywaiting]

I believe the option ARMs is how middle class families were buying $500,000 to $800,000 house in San Diego.

Time will tell.

[PCinSD]

“About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.”

That prediction concerns me the most. Some here have suggested that 2010/2011 may be the time to buy. This could throw a wrench in that theory.

pabloesqobar

[PCinSD]

“About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.”

That prediction concerns me the most. Some here have suggested that 2010/2011 may be the time to buy. This could throw a wrench in that theory.

pabloesqobar

[PCinSD]

“About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.”

That prediction concerns me the most. Some here have suggested that 2010/2011 may be the time to buy. This could throw a wrench in that theory.

pabloesqobar

[PCinSD]

“About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.”

That prediction concerns me the most. Some here have suggested that 2010/2011 may be the time to buy. This could throw a wrench in that theory.

pabloesqobar

[PCinSD]

“About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.”

That prediction concerns me the most. Some here have suggested that 2010/2011 may be the time to buy. This could throw a wrench in that theory.

pabloesqobar

[kewp]

I think the idea is that those folks will toss the keys or refinance before the 2011 deadline, once its clear how toxic the loan product is.

[kewp]

I think the idea is that those folks will toss the keys or refinance before the 2011 deadline, once its clear how toxic the loan product is.

[kewp]

I think the idea is that those folks will toss the keys or refinance before the 2011 deadline, once its clear how toxic the loan product is.

[kewp]

I think the idea is that those folks will toss the keys or refinance before the 2011 deadline, once its clear how toxic the loan product is.

[Author]

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