Wait until the second wave of foreclosures hits the housing market.
"One out of every ten Americans is behind on their mortgage."
60 Minutes Reporter Scott Pelley story on the coming second wave of mortgage defaults. "Where's The Bottom?"
"One out of every ten Americans is behind on their mortgage."
If you think the subprime mortgage foreclosure crisis is bad, wait until the second wave of foreclosures hits the housing market.
Alt A and Option ARM Loans that were originated in 2005-2007 are ready to reset. When the interest rate resets on an ARM, the monthly payment can go from $800 per month to $1,500 per month. This is a ticking time bomb that is now due to go off. Predatory lending practices enticed borrowers into loans with "teaser rates". A mortgage that has a teaser rate loan of 1% can go to 9% overnight. Some of the loans were "liar loans" that the home buyer could not a actually afford.
The US mortgage bubble is only halfway through bursting. Things are going to be much worse that was thought.
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