Real Estate Finance: Theory and Practice (with CD-ROM) October is expected to be a peak month for hybrid [tag]adjustable rate mortgage[/tag]s (ARMs) to reset, with the interest rates on some $50 billion worth of loans poised to go up dramatically. In the past few months, the foreclosure story has become a tale of two regions. Some of the hardest hit states have traditionally been in the Midwest, where plant closings and job losses have hit the economy there hard. The other region is the Sun Belt, which is showing even more significant foreclosure growth as out-sized price increases in the first half of the decade led to virtually unchecked real estate speculation. When housing markets were hot, many delinquent borrowers escaped actual foreclosure because their home equity had grown enough so that it well exceeded the amount of the loan’s debt. That enabled them to sell their properties at a profit or refinance and use the money to pay off past loans.

click here for article