This chart shows the number of properties that were purchased between 2004 and 2007 with Adjustable Rate Mortgages. This chart breaks down the data by zip code. The 94608 zip code an area that contains parts of West Oakland, North Oakland and Emeryville. During the peak, (years 2004-2007) 30% of buyers purchased properties, (with 1-4 units) with an adjustable rate mortgage. This equates to 1305 properties. This is not to forecast that all of these mortgages will go into default, but in this zip code home prices have declined making it incredibly difficult for one to refinance. (When you refinance a home, the bank wants you to have equity in the property - at least 20%. Meaning, if your home is worth $300,000 the bank wants you to owe no more that $240,000 in loans.) If these homeowners mortgages adjust to an increased rate, it could make paying the mortgage tough. This coupled with job loss could affect the up coming short sale and bank owned property inventory.
The data in this chart is provide by Old Republic Title Co. Information is deemed reliable, but is not guaranteed.
