As Congress hashes out the details of the mortgage bailout plan, another wave of problem loans will soon come crashing down, especially in Florida.
Nearly $100 billion worth of loans are deemed at risk for foreclosure over the next two years nationwide as borrowers with adjustable rate loans, called option-ARMs, see rates adjust, some ahead of schedule, according to a report released this month by Fitch Ratings.
Some borrowers with these loans are being notified now of payment changes, and the majority of those loans will reset in 2010.
“The average increase in mortgage payments will be 65 percent,” according to Alla Sirotic, senior director for Fitch. “Payments could jump by as much as 100 percent for some people. If you can’t get out of the mortgage or pay that payment, you’ll be in default.”
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