The New York Times and the San Francisco Chronicle a few days ago reported a disturbing story about foreclosures, we will be hit with another wave of foreclosures sometime in the coming year of 2010.
Deborah Lillian, a chief executive said some clients who chose option-arm loans were small business owners or seasonal workers. Joseph Mason, a banking professor said "Now all they can likely afford is the minimum payment, so they're just buying time in a dwelling until their reset date."
Most of the option arm borrowers owe more that the house is worth and cannot refinance. My question is, when will this ever end, how many bad loans are there out there? What will happen to all these people who perhaps due to no fault of there own, were misinformed about the kind of loans they signed off on?
Here is what I think, all loan officers who duped their clients into accepting these kind of loans should be made to work and pay off all these loans. I hope there is a solution to this mess.