Feb 05 2008
Subprime Reset Schedule
I did a little searching and found a chart showing when many sub prime ARM loans will reset. The chart shows that in about 6 months we should see a reprieve in the number of loans going into foreclosure and we will all start trying to put this crisis behind us. Life probably won’t be much easier for those of us with homes going into foreclosure already. For those of you waiting to buy a home, this may be an indicator of when the market will be the most saturated with homes in foreclosure. For those of you who have had your home value slashed due to foreclosures in the area, this should show the point which abandoned houses quit appearing in your neck of the woods.
There are a few things to note here:
- The data in this chart starts from January 2007, so as of the writing of this post (Feb 5, 08) we are in month 13 along the bottom.
- Sub prime ARM loans are the gray portion of the bar for any given month. These are the loans most home owners are worried about and the ones that most often go into foreclosure
Yes, it’s the ARM resets that are the killer right now, and will be a devastating force through Summer. After that we can only hope the house flippers will not feel their oats again, and once more threaten capsizing of the boat.