June 21st, 2006
Home Price Corrections?
Are the home-price corrections coming?
If you haven’t bought a house yet, some good deals might be coming…
In 2003, Anita Britten refinanced her two-story brick cottage in Lithonia, Ga. using a hybrid adjustable rate mortgage, or ARM. Her lender reassured her that she could refinance out of the riskier loan into a traditional one when her interest rate started to reset.
Three years later, Britten can’t get a new mortgage and her monthly payment has jumped by a third in six months. She can’t afford her payments and may face foreclosure if her financial situation doesn’t change.