Mortgage resets ~

Many San Diego homeowners were put into loans that reset to higher interest rate – typically 2 to 5 years from the date the homeowner bought the house. The rational from the Mortgage Broker was that the borrower could refinance at a later date at a better rate.

Well guess what – in many markets values dropped and it was no longer possible to refinance because the borrower is upside down on the loan …

Here is a chart with a timeline of “resets” – do bear in mind that one in three home in America are owned free and clear i.e. no mortage at all.

San Diego foreclosures and short sales are set to continue for the next couple of years – if you need advise and assistance to help you sell or purchase a home in San Diego please get in touch and see if we can help.

* This data is not just for San Diego County – the figures are for the Continental US.

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