Experts: New Wave of Home Foreclosures Is Building

Tuesday, 06 Apr 2010 09:36 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
As far as the reset of adjustable rate mortgages goes, it’s a case of good news, bad news this year.

First, the good news: it appears those mortgages won’t suffer a crash, as many experts had forecast.

But the bad news is that the crash won’t occur because many homeowners already have defaulted on these mortgages.

"The peaks of the reset wave are melting very quickly because the delinquency and foreclosure rates on these are loans are already very high," Sam Khater, senior economist at First American CoreLogic, told The Wall Street Journal.

So it’s not as if the housing market is suddenly rebounding.

The problems posed by the resetting of adjustable rate mortgages (ARMs) pales in comparison to the problem of the millions of homeowners who are "underwater," Khater says. Homeowners are underwater when their house is worth less than the value of their mortgage.

Defaults aren’t the only factor holding down the impact of mortgage resets this year.

Lower-than-expected interest rates and mortgage relief programs around the country are lessening the burden for ARMs owners too.

The S&P/Case-Shiller home price index unexpectedly rose 0.3 percent in January from December, but many experts don’t expect that to last.

“It’s a temporary stabilization,” housing analyst Joseph Brusuelas told Bloomberg.

“Foreclosures are still going to bite the market. Given the preponderance of negative housing data, we may see another leg down.”

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

German Astronaut: Image of Gaza Is 'My Saddest Photo Yet'

Thursday, 24 Jul 2014 17:08 PM

A picture of rockets in the skies over Gaza is "my saddest photo yet," German astronaut Alexander Gerst tweeted from the . . .

Wyoming Cave With Fossil Secrets to be Excavated

Thursday, 24 Jul 2014 13:46 PM

For the first time in three decades, scientists are about to revisit one of North America's most remarkable troves of an . . .

FTC Commissioner Warns on Mobile Health-Data Gathering

Wednesday, 23 Jul 2014 20:48 PM

Federal Trade Commissioner Julie Brill, speaking in Washington on Wednesday, expressed concern about the way apps on sma . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved