Will foreclosures spike? What will be the impact?

Foreclosures to spike as new rates kick in

Comment: Oh the dangers of the ARM (Adjustable Rate Mortgage)!

Excerpts:

About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages - which made home buying more affordable to U.S. buyers in recent years - reset to higher payments, according to a study by research firm First American CoreLogic.

The U.S. mortgage industry loans about $2 trillion each year, so the loses from foreclosures may be less than 1 percent of total lending, the report said.