cfish

Closer Look At The ARMs Reset Problem

Good observation! I would like to add my 2c about possible prolonged effects that will drag on forever.

It takes 90 days to go through a typical foreclosure process for a home to be REO. After that, typically, banks hire someone to "clean it up" and list it with a Realtor - which then will sit on a market of over 10 months of supply to move. Most banks probably have too many foreclosures to go through all these stages. What will they do? They have many options, and I believe whatever they might do will end up making the house listed cheaper on the market.

Then the snowball starts rolling for real. More mortgages will be underwater, making more people walk away.