ARM Reset Hangover, Opportunity or Doom?

Paul Knag points out some ominous forward affects of the consumer ARM inventory.

Opportunity: If you think investors are prepared open up or get creative in future mortgage products to work-out payment shocked clients. Or, some magical nationwide, rapid property value appreciation.

Doom: If you think investors will still maintain tight loan amount and equity guidelines. And, no magical economic indicators to support nationwide, rapid property value appreciation.

Consumers: It is time to find ways to rapidly increase your income or reduce non-mortgage debt!

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One response to “ARM Reset Hangover, Opportunity or Doom?

  1. It is opportunity for those who will still be writing paper in 2009-2011. Interest rates should remain low and investors will start buying paper as the dust settles next year. This is a prime time to have your own funds to loan. Can you say REIT? Those with the money will dictate this future so the closer you can be to the money the happier you will be. As for the consumer, I do not see them paying off or reducing consumption in the near term.

    It will be a profitable time if you get it right!

    Bryant

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