For a state like California the real question in 2010 will be how exotic mortgages like Alt-A and option ARMs react to recast dates and a slumping economy. It may be the case that some other states may be finding bottoms quicker financially but California will be wrestling with another $21 billion budget deficit in a matter of months promising additional gridlock. California lived and fell by the housing sword.
We have one of the highest unemployment and underemployment rates at 23 percent.This hasn’t changed even though the stock market has been raging. Some states have already washed out a large portion of subprime mortgages but California holds 58 percent of all option ARMs. This is a uniquely California problem. Read more about option ARMs…
