Option ARM Bomb

Many have been warning of this pending implosion for years, but evidently it’s just now hitting the major news organizations.  How did anyone ever think that a mortgage that didn’t even cover the interest charges each month was a good idea?

From the numbers I’ve seen, 2010 and 2011 are the years when most of these Option ARM’s are due to reset to “real” interest rates.  House prices aren’t done bottoming yet.

gk

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