Mortgage Mayhem - home prices drop like ROCKS !

Subprime Mortgage Collapse causing huge Mark-down in Home Values & prices.

There is a great graphic in Fortune Magazines September 3rd issue that clearly illustrates the time-line of variable rate mortgages due to have their interest rate reset in the next 18 months. It most certainly shows that December of 2007 will be the peak of the mortgage resets with $50.7 billion reseting that month compared to that of January 2007 when we had $27.0 billion. It looks like we won’t get back down to that range again until October of 2008.

To sum it up. More than $482 billion in loans will have their Interest Rate reset.

This clearly shows that Realtors who don’t have training in Fore-closures and Short Sales will need to get up to speed quickly, as that training will get much use over the next few months.

There is also another great chart presented by Bankrate.com that shows the divergence of Jumbo Loans and smaller home loans.