This site is about the overreaching political power of the NC Association of Realtors flush with money from cashing in your equity 6% at a time, leaving you to pay for growth with property taxes, year after year, with or without cash flow. In the last few years NCAR has pumped millions of dollars into NC political campaigns at the state and local level. They have spent millions more to defeat Local Options for Local Governments with misleading ads.

Sunday, December 14, 2008

Alt-A and Option ARM Meltdown Coming

A Second Mortgage Disaster On The Horizon?
A Sixty Minutes story explains that the housing bubble is not finished bursting by a long shot.

As correspondent Scott Pelley reports, it turns out the abyss is deeper than most people think because there is a second mortgage shock heading for the economy. In the executive suites of Wall Street and Washington, you're beginning to hear alarm about a new wave of mortgages with strange names that are about to become all too familiar. If you thought sub-primes were insanely reckless wait until you hear what's coming.
Learn how Alt-A and Option ARM mortgage defaults are leading a second wave of foreclosures.


DC said...

It's sad the blame game most of these borrowers seem to subscribe to. I used to be a mortgage broker and the borrowers wanted to pay $700 for a $400,000 house. Fewer were duped into this type of mortgage than you would think

DC said...

The other thing about option ARM's that people fail to realize is that with rates so low, option ARM payments have gone down as well- many below what a 30 yr fixed would be right now

For those wondering exactly how these things work- this is a pretty good article that breaks it down