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September 6, 2008 11:54:37 PM CDT

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New Wave of Foreclosures Expected in '09

Posted Jun 7, 08 10:44 AM CDT in Business 

(Newser) – America’s subprime victims may have grudgingly accepted their fate, but there’s a new class of borrowers primed to suffer, BusinessWeek reports. Homeowners who took out ARMs, or adjustable rate mortgages, will soon face skyrocketing payments as their loans reset. About a million people have the mortgages, but only a small number have already fallen due. “It's a ticking time bomb inside your house that you can't get rid of,” one insider said.

“Most of the public is thinking that the subprime thing is over, but this is another thing waiting," said one industry watcher. “The problem for these borrowers is that once you go underwater, it's very hard to refinance, and if you cannot refinance there is very little option for you.”

Source BusinessWeek

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Chart shows nationwide foreclosure filings.   (AP Photo)
Graphic shows total foreclosure filings for past 12 months.   (AP Photo)
A for-sale sign outside a new, single-family home in east Denver.   (AP Photo/David Zalubowski)
A foreclosure sign is seen on the lawn of a home in Egg Harbor Township, N.J.   (AP Photo/Mel Evans, file)
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US economy  • housing market  • foreclosure  • debt  • subprime mortgage crisis  • home sales  • homeownership  • lending practices  • adjustable-rate mortgages


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