tag:blogger.com,1999:blog-6896154962157569433.post607663876972006694..comments2023-09-05T00:55:19.656-07:00Comments on normxxx ruminates...: A Bubble In Rate Resets, Another In Foreclosuresnormxxxhttp://www.blogger.com/profile/00342088918066368286noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6896154962157569433.post-91851845985043469002010-07-28T07:53:58.340-07:002010-07-28T07:53:58.340-07:00Another twist to this crisis is the fact that a si...Another twist to this crisis is the fact that a significant number of Small Business Owners fell prey to the attractive Alt-A and Option ARMs loans that were used to refinance their homes to access cash for their businesses in the built-up equity in their home during the Housing Bubble. They are at-rsik as these mortgages reset/recast since the most attractive, Interest-Only, comprise more than 93% of the these Option Arms. I have three Bornstein & Song Toxic Mortgage Surveys to provide evidence for thsi conclusion. The financial distress, as negative amortization will cause a significant spike in their monthly mortgage payment, will result in further job losses and more defaults and foreclosures. This will prompt a self-perpetuating cycle of job loss and foreclosures. <br /><br />Samuel D. Bornstein<br />Professor of Accounting and Taxation <br />Kean University, School of Business, Union, NJ<br />bornsteinsong@aol.comProf. Samuel D. Bornsteinhttps://www.blogger.com/profile/06785822100661930376noreply@blogger.com