The Arizona Repulic reported yesterday that not only is the inventory of homes for sale at an all time high but that homes marked for short sale to avoid foreclosure is also up. Bankrate has some pretty interesting numbers on foreclosure risk based on the type of mortgage.
• Prime-rate fixed-rate: 1 in 588
• Prime-rate ARM: 1 in 189
• FHA fixed-rate: 1 in 147
• FHA ARM: 1 in 101
• VA: 1 in 244
• Subprime fixed-rate loan: 1 in 77
• Subprime ARM: 1 in 31
I find it revealing that ARM’s have a higher rate of foreclosure. Most likely it is a result of a pre-payment penalty and/or poor credit management on the part of the borrower. Lack of strong loan analysis by the loan officer probably has something to do with it as well.
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on Sep 11th, 2007 at 3:45 pm
[...] I suggest you download the flier, call Aimeeand make a plan to own your home. This is also an attractive solution if you’re in a subprime mortgage and want to make sure your credit is in good shape before your ARM adjusts. [...]
on Mar 5th, 2008 at 9:39 pm
Most of the foreclosures are due to adjustable rate mortgages(ARMs). Many homeowners who got adjustable rate mortgages (ARMs) on their properties when rates were at an all-time low. Now those adjustable rates have increased and many homeowners find themselves making payments on homes that have no equity or even have negative equity. There is still hope for homeowners in foreclosure. There is a good site where homeowners in foreclosure can get help. Admin Note:
on Mar 20th, 2008 at 4:54 am
Adjustable rates have increased and many homeowners find themselves diffcult to make payments on homes that have no equity or even have negative equity. There is still hope for owners in foreclosure, so that they can get some amount above equity.