Option Arms About to Bite Builders

There are still about $500 billion of first trust "option arm" mortgages in existence that were originated between 2002 and 2007. These loans are not eligible for the Federal Housing Finance Agency's (FHFA) new streamlined modification initiative I wrote about last week. Nor have they been eligible for the 12 government sponsored loan modifications programs that have been made available to mortgagors with loans made through Fannie Mae or Freddie Mac programs over the past five years.

Now that real estate values and transactions are rebounding, especially on the West Coast where the option arms are concentrated, it's a good time to review the status of the issue....488 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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