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  • The Second Wave Is Already Ashore (ARM Resets)

    12/18/2009 8:37:49 AM PST · by blam · 11 replies · 1,170+ views
    The Daily Reckoning ^ | 12-18-2009 | Jim Nelson
    The Second Wave Is Already Ashore By Jim Nelson 12/17/09 Baltimore, Maryland – The second wave of ARM resets and foreclosures might come sooner than you think. According to Whitney Tilson and Glenn Tongue of T2 Partners, the experts on this subject, about 80% of option ARMs are negatively amortizing. Meaning these so-called top-tier borrowers are heading further into the hole. Once their rates reset, they could be in serious trouble. And that could be happening very soon: The chart above, which should look familiar, shows the two peaks in this long-term housing conundrum. The first mountain is comprised of...