By to | April 05, 2012 at 11:02 AM EDT |
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Not to sound like a pessimist, but the reality is there are a few more foreclosure waves yet to come. 1st the Subprime loan; but you also have those who were given two mortgages with the second being a balloon payment and the advise to go with this loan now and refinance to get out in a few years... but Years later the property values decreased lower than their original loans and the ARM loans increased to a point that caused them to miss payments and ruin credit for a new loan's eligibility. What Now? Their Balloon Payments are now due...and here comes a new default.
Balloon Payment: total principal balance becomes owed at once. i.e $70,000.00 all due NOW at once
MSNBC via Reuters "We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group with 10 offices in Ohio. READ MORE
