The big real estate news is that home buyers might see more homes coming on the market in the next four years. Many homeowners with equity lines are going to see their monthly payments triple. For years, many with equity lines were paying “interest-only.” The real estate news is that it’s time to pay the piper.
“Mortgage delinquencies are on the rise for home equity lines of credit ……In most cases, after these loans hit the 10-year mark, borrowers must start paying the interest and principal on these loans. For many, that could mean their monthly payments could more than triple. ……The number of homeowners missing their payments is growing. The chief economist of Equifax has called the pending increase in payments on home equity lines a “wave of disaster.”
More than $221 billion of these loans at the largest banks will hit this mark over the next four years….. delinquencies will mean banks stand to lose 90 cents on the dollar for every loan that goes bad.” Read the rest here
