Subprime ARM Loans: Prime Driver Of Foreclosure Record

The Mortgage Bankers Association expected the figure of payments that have fallen behind from Americans with subprime credit and adjustable-rate loans to worsen.

It has been reported that the number of borrowers with subprime ARM mortgages who have missed at least one payment has reached 16% from its 14% last year. Due to this, over 2million subprime, low-income, minority borrowers is expected to lose their homes, and over 80 lenders have gone out of business, creating a drag on the housing market. Tom Miller, Iowa Attorney General, believes that the prime driver of the foreclosure of homes in the USA is the proliferation of ARM loans. States of Ohio, Michigan, Indiana, California, Florida, Arizona and Nevada are experiencing an alarming surge of homes in foreclosure, making speculators walk away from homes that are worth less than the mortgages in those states.

Vanessa Arellano Doctor

Florida Mortgage Broker

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