Adjustable Rate Mortgage Reset Schedule

Adjustable Rate Mortgage Reset Schedule

Yesterday I attended the California Association of Realtors Tech Tuesday.  At the Keynote session, we were given a quick economic look and the statistical data for future home buyers before digging into prognosticating the tech trends coming for our business.  Part of the discussion included how much longer we will be dealing with the current market conditions.  The picture below is a chart that was displayed showing Adjustable Rate Mortgage Reset Schedule.

The Adjustable Rate Mortgage Reset Schedule has much to do with the current market declines we are experiencing now.  If you look at the chart below, round two of the these Adjustable Rate Mortgage Resets is coming in 2010 and 2011.  When those mortgages reset, we will see another influx of short sales and foreclosures.  What I am most concerned with in looking at the chart data is the following:

• The top dark blue portion of the bars are Unsecuritized ARMS  (HELOCs?)
• The greenish section of the Bars are the Option Arms
• Of these loans how many were the “Liars Loans”?
• If a good portion of these ARMs are “Lairs Loans” then how are those loans going to avoid a short sale or foreclosure when they cannot refinance because their home is worth less than the outstanding financing and /or then cannot qualify for the refinance because now they have to prove they have the income instead of just “Stating” their income?

Looking back at past market history, recovery has never been over night.  Simi Valley home sellers need to be mindful of this data as it will be sometime before we see home prices return to 2004-2005 levels.  What this means for Simi Valley home buyers is that the market will continue to provide very good buys for those that are patient, prepared and determined.