Article Predicts 1.1 Million New Foreclosures are Coming!
I saw an interesting article today by Holden Lewis of Bankrate.com entitled "Who's Most at Risk for Foreclosure", in which he predicts 1.1 million new foreclosures over the next six or seven years, as ARMs (adjustable rate mortgages) adjust up and borrowers experience "payment shock" as payments increase while home values remain flat or decrease.
Mr. Lewis says "You have a 1-in-3 chance of losing your house to foreclosure if you got an adjustable-rate mortgage, or ARM, in 2004 through 2006 that had an initial teaser rate of less than 4%. If you got a subprime ARM in that period, you started out with a higher rate, and that puts you at less risk. You have a 1-in-8 chance of losing your home."
The Greater Phoenix market has seen its market turn from the hot sellers market of a couple years ago, when it was easy to get "creative" mortgages such as subprime ARMs, to a slower buyer's market where it is taking much longer to sell. Borrowers with these types of loans will find it difficult to afford the new payments, or to refinance into lower payments since they may not have had enough appreciation (or may have actually lost value in their home) to qualify for a new loan. If you would like to read the entire article, click here:
Who's most at risk for foreclosure?
If you are facing a foreclosure now or fear that you will be soon, and would like to talk to us about the situation, please call our 24-hour free educational message and leave a message or follow the prompts to be direct connected to us. We will send you a free Consumer Guide to the Foreclosure Process by return very discreet mail. You can also send me an email by clicking this link: Email Me!. We really can help, and we really DO care. Just call 1-800-433-8563 ext. 86186 right away!
Mr. Lewis says "You have a 1-in-3 chance of losing your house to foreclosure if you got an adjustable-rate mortgage, or ARM, in 2004 through 2006 that had an initial teaser rate of less than 4%. If you got a subprime ARM in that period, you started out with a higher rate, and that puts you at less risk. You have a 1-in-8 chance of losing your home."
The Greater Phoenix market has seen its market turn from the hot sellers market of a couple years ago, when it was easy to get "creative" mortgages such as subprime ARMs, to a slower buyer's market where it is taking much longer to sell. Borrowers with these types of loans will find it difficult to afford the new payments, or to refinance into lower payments since they may not have had enough appreciation (or may have actually lost value in their home) to qualify for a new loan. If you would like to read the entire article, click here:
Who's most at risk for foreclosure?
If you are facing a foreclosure now or fear that you will be soon, and would like to talk to us about the situation, please call our 24-hour free educational message and leave a message or follow the prompts to be direct connected to us. We will send you a free Consumer Guide to the Foreclosure Process by return very discreet mail. You can also send me an email by clicking this link: Email Me!. We really can help, and we really DO care. Just call 1-800-433-8563 ext. 86186 right away!
posted by Bruce Voris at 10:19 AM
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