The Foreclosure Report

Option ARM Loans Work In 'Appreciation World'

An Idaho television station reports on option ARM loans. ""Homes across the Treasure Valley continue to gain worth, and more and more people are jumping into the market head first. 'We live in a good market. We live in a market right now where property values are constantly increasing,' said Brett Anderson, owner of Security First Mortgage."

"Also increasing, the rise in popularity of the option adjusted-rate mortgage, also called the pay option ARM. 'I have a couple that just bought a second home, a vacation home they never could have afforded, but on this program,' said loan officer Ricky Catalano."

"But this type of mortgage is still fairly new in Boise, and officials say it would only work in about six or seven places in the entire USA, and we're one of them. 'In this kind of appreciation world it still continues to be a good loan for a lot of people. It isn't a loan for the weak or conservative because it is a very aggressive program,' said Catalano."

"In other areas of the United States, the loan is just starting to run its course and they're seeing a sharp increase in foreclosures. 'If they are presented with the chance to buy a little nicer home people get ahead of themselves as to what they really can afford,' said Tom Lay, of Neighborhood Housing Services."

posted by Ben Jones @ 10:40 AM