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October 07, 2006
Option ARMs: "The Sky is Falling-The Sky Is Falling" So Say The Chicken Littles Of The
Option ARMs are getting a lot of adverse publicity and regulatory attention. It's kind of like a smoker suing for cigarettes causing cancer and getting Alzheimer's in the process regarding the dangers of smoking. Likewise, anyone signing on for an Option ARM suddenly suffers the memory loss associated with plowing through a mountain of disclosures and examples indicating the dangers of the negative amortization and everything that goes with it. The high foreclosure rates in the ARM segment of the mortgage business will eventually sort itself out. There will be properties sold below acquisition prices, short sales by lenders, and a few precipitated bankruptcies when area prices fall and become soft. Option ARMS utilized for investment property acquisition with an 80% or lower Loan To Value can lead to cash flow. Triplexes and fourplexes can meet the initial parameters of building a cash flow machine. Carefully put together Option ARMs can be an excellent mortgage vehicle for building cash flow in investment
From Option ARMs: "The Sky is Falling-The Sky Is Falling" So Say The Chicken Littles Of The
Posted by Michael at October 7, 2006 05:07 PM
