Foreclosures Dip, But Adjustable Mortgages Set To Spike
LOS ANGELES (CBS) — Fewer Southland homeowners struggled to keep up with their mortgages in December, but there may be more turbulence for those with adjustable rate mortgages.
KNX 1070's Pete Demetriou says despite home foreclosures dropping 14 percent in California, people in downtown LA are just not that optimistic.
Podcast
Analysts warn that despite the upbeat data, a large number of adjustable rate mortgages are about to adjust upward in the coming months, which may trigger a new mortgage crisis.
One man told Demetriou he has seen four homes in his Long Beach neighborhood fall into foreclosure this year alone, and the situation is likely to worsen in about six months unless the job picture turns around significantly.
(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)
