Two good articles today taking a look at the second round in the mortgage crisis; the option arm and interest only loans. (Subprime was round one) It's interesting to note that on the option arms many will adjust earlier than anticipated because they will be triggered early when they reach a certain loan to value. As prices continue to fall, loans will adjust sooner sending more keys to the bank for foreclosure, driving prices down, repeat.
http://www.cnbc.com/id/26529207
http://moneynews.newsmax.com/streettalk/housing_option_arm_resets/2008/09/02/126915.html
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