Asked by Mike Anderson, Oakland, CA • Mon Dec 24, 2007
I've seen recent reports that a large number of Pay Option ARM mortgages are due to recast in the next few years, which will likely result in a substantial amount of defaults and further lowering of home prices.
I've also heard that these mortgages were fairly commonly used to finance home purchases in affluent areas, as compared with so-called sub prime mortgages (which tend to be concentrated in low-income areas).
I'm currently in the market for a home in the East side of the SF Bay Area -- Berkeley, Kensington, El Cerrito, and the nicer parts of Oakland, like Rockridge, etc. I'd like to know how the recasting of these mortgages over the next couple years is going to impact this market, which so far has not been as hard hit by the sub prime defaults as other areas.
Can anyone tell me how I can find out how many homes purchased in the East SF Bay Area the past few years were financed with Pay Option ARMs, and when these loans originated?
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