Ladies and Gentlemen: The Pay Option ARM

I often attempt to explain to friends and family, in simple and straightforward terms, the basic mechanism of the pay options adjustable rate mortgage. I often feel that I’ve done a poor job in this effort. Fortunately, I’ve found other who have done a much better job at this. Dr. Housing Bubble (www.doctorhousingbubble.com) is a site with just such an individual.

If you’re interested in seeing a horror film this summer, save your $12 and read about the monster that is … the option ARM!!!!

Here are a few of his articles dealing with this mess:

Option ARMs for Dummies: Why 4.5 Percent Mortgages Rates will do Absolutely Nothing for these Toxic Assets
^start here^

Stage Two of the Mortgage Collapse: $500 Billion in Pay Option ARMs Meet the Piper in 2008 with 60 Percent Being in California

Notice of Financial Default: California Develops a Mortgage Tsunami Patter Reminiscent of the 2007 Subprime Collapse. Alt-A and Option ARMs Unite

10 Reasons Why Buying a Home in Southern California today is a Mistake. California Housing and Financial Market Analysis produces no Green Shoots