Foreclosures May Rise as ARMs reset
This year, more than $300 billion worth of hybrid ARMs will readjust for the first time. That number will jump to approximately $1 trillion in 2007, according to the MBA. Monthly payments will leap too, many beyond what homeowners can afford. According to a recent article on Yahoo Finance, many homeowners will not be able to keep up with the rising rates. Signs of this trend are already in the market, as several personal stories in the story show.
"ARMs are a ticking time bomb," said Brad Geisen, president and chief executive of property tracker Foreclosure.com. "Through 2006 and 2007, I'm pretty sure we'll see a high volume of foreclosures."
