One out of three mortgages made during the past three years with "teaser" interest rates below 4 percent are expected to go into foreclosure because of rising payments, according to a study Tuesday from FirstAmerican CoreLogic.Overall, CoreLogic estimates rising mortgage payments from adjustable-rate mortgages (ARMs) will trigger 1.1 million foreclosures representing $326 billion in loans.
The loss to lenders and investors after they sell the foreclosed properties: $112 billion.
"This does not break or dominate the market," said Chris Cagan, the study's author. "It is part of the market. But there is that slice that is exposed."
Read More
