Based on an article published by the San Francisco Chronicle, it talked about how many home mortgages wll adjust in the San Francisco Bay Area alone. A large number of these home adjustable rate mortgages are comprised of Option ARM loans where it allowed homeowners make payments that are less than interest only payments. The difference in interest that does not get paid gets thrown back into the principal. The end result is a higher principal balance. The adjustable rate mortgages that allowed interest only payments, the principal remained the same.

Why will these homeowners be in trouble? Lower Home Values AND Job Losses. A Double Whammy!

This article noted about 20,000 Adjustable mortgages to recast in 2010, and another 20,000 in 2011. Compare this to the 7800 mortgages that adjusted in 2009, the opportunities for short sales will Sky Rocket!

Get in the pre-foreclosure market NOW!, Short Sales will be around rolling into 2012!

Unemployment Data

• On Sept 11, 2009 – NBC reported that high unemployment will be around for year and 2 out of 5 Californians are jobless.
• June 2009 Monthly Analysis by the East BAy EDA reported that i May 2009, unemployment in the San Francisco Bay area was 10.4 percent.
• The US Labor Department reported on Sept 3rd, 2009 that the jobless rate climbed to 9.7%.

Check out this article from San Francisco Chronicle Submitted Sept 20, 2009!

• 30 Billion Home Loan Time Bomb Set for 2010
• ARTICLE: East Bay Economic Development Alliance
• ARTICLE: NBC