Study Says That a Flood of Foreclosures is Coming

[hausdok]

According to an article at Bankrate.com, 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 percent.

To read more, click here.

[Terence McCann]

We have a boat load of bank owned property here. Seems like 1 out of 4 inspections is on a bank owned property, some nice homes too. The numbers are really up.

[kurt]

When it sounds too good to be true........

[Chris Bernhardt]

If that is true then I would expect a feeding frenzy by investors when the market corrects next year. In about 2 years there will be another wave as those now start heeding the FHA call. From what I hear FHA is pounding the streets trying to take advantage of the death of 100% financing, subprime, and stated income loans.

Chris, Oregon

[paul burrell]

If I had to choose between a cinder block dropped on my toes from 5 feet high or an adjustable mortgage on my home I would take the cinder block on toes. The da** things should be illegal. Predatory lenders do not explain adequately the future problems with fluctuating rate loans, if at all. I have dealt with many lenders in my time some were good and some were so bad I called one of being a mafia operation to his face. When I complained to another lender he said "we go by the golden rule. We have the gold and we make the rules".

Moral of this story is beware of strangers bearing gifts and mortgage brokers.

Paul B.