You need to reevaluate your options.
Option ARMs – not so good. (Be aware that the URL has a bad word.)
If these are not a recipe for disaster for the borrowers, the lenders and investors …
Not only are people getting option-ARM’s, 80% aren’t even fully documenting their income! Does anybody else see a problem here?!?!?
I don’t have experience with these loans in the Central Virginia market; my clients tend to choose more conservative loan options, but they scare me.
And this from the referenced WSJ article –
Investors are blithely ignoring the inevitable problems these banks will endure with their option-ARM customers. Just yesterday, mortgage giant Countrywide Financial Corp., another seller of option ARMs, reported rising delinquencies.
Those with cash should bide their time; foreclosures in market with high percentages of these loans will rise.
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At which time I hope to be in a better position, so that I can take advantage of the drastic re-adjustment of the Las Vegas housing market. They’ve got a lot of those sketchy mortgage deals.
And let us not forget those “interest only” loans where one isn’t even paying the principal for the first 5 or so years.
I’m predicting these will be signifigant contributors to the deflation of the real estate bubble.
Of course then what do I really know.