Quote:
Originally Posted by bentlebee
Florida mortgages hurting Bank of America's results: bizjournals.com Business News - MSN Money (http://news.moneycentral.msn.com/ticker/article.aspx?feed=ACBJ&date=20080815&id=9035232 - broken link)
"The lender forecast that $10.9 billion of its option ARMs would reset from 2009 through 2011, with the majority coming in the latter year."
This is what I see in my neighborhood,...so does that mean it will go on until almost 2011? I hope not.... 
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Maybe 2012 or longer actually. The sub-prime problems are starting to decrease. Most of those ARMs have reset once or twice by now, those hardest hit are dealing with their pain. The A- and prime programs are just starting... its coming ahead of the resets because people expect it this time.
If you have a ticking time bomb and you realize you can't sell or refinance because you are underwater in your loan and financing is tighter... what do you do? Keep making payments for 2-3 years knowing the potential problems and hope for the best (as the sub-prime borrowers did)?
Florida isnt along, California is there with them. In some parts of South Florida ~20% of loans in 2005-06 were Option ARMs. They also made up 1/3 of loans done in some regions of California. Those that took these loans not only have to worry about the adjustable rate, but the recast where they can not defer their interest any more. Lets see what solutions people can come up with for this...
There are some good charts of % loans that are Option ARMs per region and the expected resets over the next few years.
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