The Mortgage Crisis Is Expected To Worsen Over The Next Few Years

by Dan Nunley

The rise in foreclosures over the past couple of years has been enormous and has been a major factor underlying the current recession.

But if you thought the mortgage crisis was nearing an end, you have another think coming.

People in the know, such as investment fund manager Whitney Tilson, say that things are going to get much worse.

According to Mr. Tilson, there’s a second wave of mortgage defaults looming on the horizon, as Option ARMs and Alt-A loans are about to reset. When those mortgages reset or adjust, and the interest rates increase, a majority of the loans are expected to default which will in turn deepen the current recession.

Estimates are that 8 million American families are expected to lose their homes to foreclosure in the next four years.

{ 1 trackback }

Foreclosed Homes And Bankruptcy
January 25, 2010 at 1:55 am

{ 2 comments… read them below or add one }

Stephen Brittain, Esq. January 5, 2010 at 7:17 pm

Dan … This is a really informative article. I really appreciate you sharing this.

Stephen Brittain, Esq.
Santa Ana, CA 92701

Carter's Mortgage Journal January 30, 2010 at 2:30 pm

I can see that we are in for another, longer lasting round of foreclosures. What will we see on the other side of this crisis?

Leave a Comment