map of OPTION ARMS from 2006 (not foreclosures)

**slim_jim** · Mar 20th, 2008, 09:25 PM

Has anybody else seen this already?

http://images.businessweek.com/gen/map_of_misery.jpg

**Runum** · Mar 20th, 2008, 09:45 PM

Hadn't seen that Slim. I can see that it came from businessweek. What was the date of this data?

**slim_jim** · Mar 20th, 2008, 09:52 PM

I am not sure. A friend forwarded it to me. I am checking though, and will let you know.

**Russ H** · Mar 20th, 2008, 11:43 PM

I changed the thread title.

You've been hoodwinked.

This is a map of refis into OPTION ARMS that was occurring in 2006.

The article appeared in Newsweek back in 2006.

Here's a blog about it, posted Sept 3, 2006:

http://www.biggerpockets.com/renewsb...tion-arm-hell/

Interesting, but not foreclosures.

-Russ H.

**slim_jim** · Mar 21st, 2008, 05:13 AM

Thanks for the correction. I hadn't found any additional info about it yet or heard back from my friend who forwarded it to me.

**jimculler** · Mar 21st, 2008, 06:01 AM

Option Arms alone wont cause misery. Taking the neg-am option every month in a depreciating market will though.

The problem will be when these people have a 5 year recast and there is no equity left to refinance with. Then they will be foreclosures.