A Second Mortgage Disaster On The Horizon?, 60 Minutes: New Wave Of Mortgage Rate Adjustments Could Force More Homeowners To Default - CBS News: "The trouble now is that the insanity didn't end with sub-primes. There were two other kinds of exotic mortgages that became popular, called 'Alt-A' and 'option ARM.' The option ARMs, in particular, lured borrowers in with low initial interest rates - so-called teaser rates - sometimes as low as one percent. But after two, three or five years those rates 'reset.' They went up. And so did the monthly payment. A mortgage of $800 dollars a month could easily jump to $1,500.
Now the Alt-A and option ARM loans made back in the heyday are starting to reset, causing the mortgage payments to go up and homeowners to default."
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But this doesn't need to happen because now the federal government is on the case and will prevent the "new wave" of defaults...right?
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