Blue bars on the chart represent the recast schedule if all the loans were to recast five years after origination date. Gray bars represent the expected schedule of option ARM resets, which show loans recasting sooner after hitting the principal cap. Credit Suisse
This has been taken from a Businessweek article on option ARMS. We have another wave of foreclosures coming up. Are we ready for it? How can the Government prevent this one. Most people who I talk to on the radio have this type of mortgage and only pay the minimum payment. That means they will be heavily upside down when this loan recasts. There will be no equity to do a refinance.
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Make the Call, Set the Plan, Do the Deal$!
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Good luck with the banks, we are going through that hell in California
Henry all we can do is move ahead