78% of Option ARMs have yet to recast.
Here is one of my favorite bloggers who writes often about a topic very close to my heart: the option ARM fiasco brewing in California. He has access to and extrapolates some amazing data. I wish I had access to such data. In this particular post, he lays out simply why option ARMs will be the next big wave of foreclosure headache coming down the road. And the incredible fact is that according to him, 78% of these time bombs have yet to recast. On top of that, the bulk of these (58%) problem loans originated in California.
Talk about a problem coming down the road…..
