Readjusting Loan Rates Causing an ARMageddon of Foreclosures
Close to 1.3 million adjustable-rate mortgages (ARMs) that Americans took out during the recent housing boom will be reseting at a new, and higher interest rates — and many homeowners will see their monthly mortgage payments shoot up by as much as 20 percent or more.
Many homebuyers may have thought that they would be able to flip or refinance their houses quickly and avoid the rise in their mortgage payments. But now that the real estate market is in decline many homeowners are finding themselves stuck in a house they can no longer afford.  Many homeowners in nearly every income bracket may soon be forced into foreclosure because they cannot make their mortgage payments.
Today, the real estate industry is saturated with overpriced, over-financed properties. Add sagging sales, plunging prices, a glut of vacant homes awaiting fickle buyers and havoc in the housing sector begins.
