19 June 2009

Worse than subprime? Other mortgages imploding slowly

WASHINGTON — Call it son of subprime. Experts warn that a new wave of mortgage foreclosures may be coming soon and could rival the default rates for subprime mortgages and slow efforts to find bottom in a prolonged national housing slump.

The mortgages in question are $230 billion of option adjustable-rate mortgages, creative lending products that flourished at the height of the housing boom. In an option ARM, a borrower can opt to pay less than his or her monthly balance due, and the difference is tacked onto the outstanding loan balance.

1 Comments:

At July 26, 2009 1:52 PM, Anonymous Anonymous said...

Thanks alot for the great posts.But How To Fix an upsidedown mortgage?

 

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