[Hydroshock]

Over a trillion dollars worth of arms with teaser rates will expire and reset to the current rates in the next 12 to 18 months. When that happens the fur will fly.

[dalereed]

"Over a trillion dollars worth of arms with teaser rates will expire and reset to the current rates in the next 12 to 18 months"

I know of 3 in Temecula CA that have been reset over $400/mo higher and are in forclosure.

[Eagles Talon IV]

Over the next 12-18 months? Where is the data that shows the actual increases these people will pay? Surely they expected an increase when the took the ARM? Plus these rates have already been raised at least once each year as interest have been rising for 17 straight quarters now. Finally, ARMS are always coming due since they have been around for awhile. Many who have seen the direction of interest rates may have refinanced and locked in a fixed rate.

Sorry, but without actually figures of how many families and what size the mortgages involved are and how many will come due at any given time, it seems this is nothing but another scenario of gloom and doom being spread about by someone with anm agenda. Something we see a lot of today. People who bought to flip their properties will get hurt and that's tough, they get no sympathy from me. The banks will take the properties back and another individual will buy them at a steeply discounted price.

And the cycle will resume as it always has in the past.

[Moonman62]

Provided that they can handle one upward adjustment they'll do alright since short term rates will be going down for the next few years.