Irvine, CA (PressExposure) January 19, 2009 -- Lawrence Roberts, author of "The Great Housing Bubble," demonstrates the dramatic impact negative amortization loans had on house prices. He opines, "Negative Amortization loans inflated the Great Housing Bubble. If this loan product had not been offered and aggressively pushed by lenders, the bubble would not have inflated to the degree that it did." The book describes how these loans work, and also why these loans failed.
The Option ARM (Adjustable Rate Mortgage) was not the only toxic, "affordability product" developed and widely used during the housing bubble. Interest-Only Adjustable Rate Mortgages were very common. Roberts notes, "Interest rates have been on a steady decline for well over 20 years. People using ARMs do not realize the interest rate risks they are assuming. Most believe interest rates will continue to fall forever." Mortgage interest rates reached historic lows during the housing bubble.
Roberts observes, "The problems with subprime loans is widely reported and known, but the problems with Option ARMs and Interest-Only ARMs given to borrowers with higher credit scores was not front-page news in 2008. The impact of these loan programs will be the big story of 2009." He documents how these loans will recast and result in much higher mortgage payments from 2009-2011. Roberts believes most of these people will find the new payments unaffordable and will likely end up in foreclosure. He says, "The foreclosure crisis is just beginning. First it was subprime, but now it is going to be middle-class Americans who lose their homes."
About the Author, Publisher and Book
Lawrence Roberts, author of "The Great Housing Bubble," is known as the Housing Bubble Cassandra. He publicly predicted the housing price crash as the primary writer for the Irvine Housing Blog (http://www.irvinehousingblog.com/). From his unique vantage point in Irvine, Calif. " the center of the subprime universe " Roberts carefully documents in his book the conditions and practices that inflated the largest real estate bubble in history. He holds a Master of Science in Land Development from Texas A&M University, and he consultants to the land development industry.
Monterey Cypress Publishing is a small press specializing in real estate and personal finance related books, audio books, and video presentations.
Purchase "The Great Housing Bubble," at Amazon.com. Obtain free ebook here: =>[http://www.thegreathousingbubble.com/]
Press Contact: Lawrence Roberts
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