Foreclosures may jump as ARMs reset

With hybrid adjustable rate mortgages adjusting upward, and while housing prices dip, and Nero fiddles, and Rome burns, many Americans can’t refinance out of this squeeze. They are finding themselves trapped in too-high monthly payments, and some face foreclosures.

According to an AP Business Wire story, foreclosure figures just released by the Mortgage Bankers Association show that foreclosure activity fell in the first quarter of 2006 over the first quarter of 2005 for all loan categories except subprime loans. The MBA didn’t specify how many of subprime loans were adjustable rate mortgages.

This year, more than $300 billion worth of hybrid ARMs will readjust for the first time. That number will jump to approximately $1 trillion in 2007, according to the MBA. Monthly payments will leap too, many beyond what homeowners can afford.

You can read the entire story at Foreclosures may jump as ARMs reset.