Whats in store for us when all the other ARMs begin to reset in 2010/11?
If Subprime ARM Resets precipitated our present economic mess, what about all the other ARMs scheduled to be Reset in 2010/11? Are they the other shoe to drop for you can betnthey are predicated on belief that resets could be refinanced by increase in home values andnthat is not likely to happen now that the Humpty Dumpty economy had its great fall. Its GD2
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Whats in store when other ARMs are reset in 2010/2011
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EthanR answered 8 months ago …
I'm not sure we will see home prices rising by 2011. At best I think we will see stability in most areas, perhaps some rising prices in a few areas. Lending standards are very tight now and it is going to take quite awhile for those who want to buy homes to bring up their credit scores and save enough for down payments.
I believe that the next wave will not be as damaging as was the first wave. There are now plans in place to help people avoid foreclosure that weren't there through all of 2007 and most of 2008. And the number of re-set ARMS should be less than was the case before.
