2.7 trillion in adjustable rate mortgages to reset over the next 18 months

[Earth_First]

Significantly, some of those ARMs were offered with an initial three-year to five-year period in which the rate was fixed. At the end of that period the mortgages will be reset at prevailing rates, potentially upending borrowers as interest rates have been rising. For many such people that moment is approaching.

"The increases we've been seeing in foreclosures don't even reflect the worst-case scenario that could happen when the $2.7 trillion in adjustable-rate mortgages are reset over the next 18 months," said Rick Sharga, vice president of marketing at RealtyTrac.

http://www.chicagotribune.com/business/chi-0605280258may28,1,2225630.story?coll=chi-news-hed

[stop the bleeding]

1. hang on people because this is going to be one hell of a ride

this thread needs attention, hence the nomination for awareness and such

[Roland99]

2. A possible buyer's bonanza in a year or two...if...

Anyone still has a decent job ;)

[DemReadingDU]

3. I feel that Bush administration is running our country like Enron

They are cooking the books, just like Enron did, and eventually our country is going to implode, just like Enron.

[Quantess]

4. This means a lot of homeowners will be S.O.L.

I predict a lot of foreclosures. Who didn't see this coming?

[demgrrrll]

5. I read a story about a couple from Atlanta who started with a 1300 dollar

house payment and were now looking at 2000 dollars per month. They were 4 months behind on the 2000 dollar payment. With gas prices increasing and other inflation issues 700 dollars could be enough to send someone over the edge. I am so glad that we locked in to a 15 year mortgage years ago. I understand that the 15 year notes cost more now than they did when we secured our loan. This is going to be a real nightmare.

[progressoid]

6. Luckily, we got that bankruptcy issue fixed just in time...

:sarcasm:

[bleedingheart]

7. I went to the bank and one of the bank officers told me that she is

getting people in the bank all the time complaining about how their mortgages keep going up.

Duh!

Now this is a reputable bank, but I asked her if some of these folks didn't get into these situations because of the bank pushing a bigger loan. She told me that most folks don't come to the bank until the find that "home of their dreams"...that they basically want that home so badly that they will sign on any line to get that home....even if it isn't the best situation. She did admit that it is in the bank's interest for you to borrow more, but people should use more common sense.

She envisions that our area will see more foreclosures because of poor judgement...