Default Servicing News, an industry publication to the mortgage default servicing industry, is reporting that another wave of foreclosures are headed our way in 2010:
“As many exotic adjustable rate mortgages (ARMs) are set to recast in 2010, the Consumer Mortgage Audit Center (CMAC) is projecting a mortgage crisis in 2010 as large as the subprime.
Recasting will undoubtedly lead to another wave of foreclosures as payments begin to double and triple.
When principal balances go up and house values continue to plummet, refinancing will no longer be an option for homeowners in negative amortization.”
We will see. More foreclosures = more inventory. More inventory = lower prices. We’ll be watching the foreclosure filings carefully here in Ocean City, Maryland for signs of the effects of mortgage resets and it’s effect on the Ocean City Maryland real estate marketplace, inventory and pricing.
The full article–
http://www.dsnews.com/articles/loan-resets-projected-to-cause-mortgage-crisis-in-2010-2009-12-11
