[IllumiNaughtyByNature]

Here is a little quote from The Economist back in 2008 talking about the California ARM timebomb.

The biggest wave of recasts is due to happen in 2010 and 2011 [. . .] borrowers' monthly payments will then surge by 60-80%," (The Economist, 8/14/08).

BOOM!!

[Freedom_Is_Not_Free]

Good reminder of wave II. We will see if it holds up, because I know that a LOT of these ARMS have been re-financed to 30 year fixed mortgages with today’s low rates.

I think we will have a Foreclosure Wave II, but knowing that many of these ARMs have already been re-financed to fixed, I won’t be absolutely shocked if wave II proves to be mild rather than violent.