| There seems to be some contention on the | | | | to selling a home. |
| internet as to the condition of the Atlanta real | | | | But perhaps the most frightening aspect of the |
| estate market. Some believe that the worst has | | | | real estate market throughout the U.S. today has |
| come and gone, while others claim that a shadow | | | | to do with option arm mortgages. Option |
| inventory of unsold foreclosures, as well as option | | | | adjustable rate mortgages, or option arm |
| arm mortgages that have yet to recast will | | | | mortgages, are mortgages where those taking |
| negatively influence the Atlanta real estate | | | | out the loan pay only a portion of the interest for |
| market for years to come. This article seeks to | | | | several years. The remaining interest compounds |
| explore the present and future of the Atlanta real | | | | on the principle, and when the new principle |
| estate market in detail. | | | | reaches a certain ceiling, the entire mortgages |
| The unemployment rate was reported to be | | | | recasts, and the person holding the loan is stuck |
| 9.8% in November 2009 in Atlanta alone, and | | | | with a payment that accurately reflects both the |
| 10.3% in the state of Georgia. However the | | | | principle and the interest. Studies have shown that |
| unemployment rate is not equal to those of all | | | | as many as 88% of option arm mortgages have |
| walks of life. For example, The New York Times | | | | yet to recast and reach their balloon payment. |
| reported in their article, "The Jobless Rate for | | | | However, on a more positive note the Housing |
| People Like You," that the unemployment rate for | | | | Opportunity Index in Atlanta ended at 79.2% in |
| all men and women with a college degree or | | | | 2009. The Housing Opportunity Index, or HOI, |
| higher was 4.5%. While manufacturing positions in | | | | was developed by Wells Fargo and the National |
| the Atlanta area may have been lost forever, the | | | | Association of Home Builders to reflect the |
| presence of several great colleges and universities | | | | affordability of the mortgages that are being |
| in the area will prepare the next generation of | | | | made in certain parts of the country. The HOI |
| employees for the next wave of jobs. Georgia | | | | factors in that a family can only spend so much |
| received a scant 24,681 stimulus jobs, according | | | | of their income on a home, and it takes into |
| to CNNMoney.com, so it is doubtful that the | | | | consideration the median income for the region |
| stimulus will make any real dent in the high | | | | where the mortgage is being made. Today the |
| unemployment throughout the state. | | | | HOI is higher than it has ever been since it was |
| No doubt the high unemployment rate in Georgia | | | | begun in 1991. So while the economy may |
| contributed to the 8.6% foreclosure rate, which in | | | | continue to sink, we shall recover strongly and be |
| term caused the massive bank failure throughout | | | | the wiser for our experiences. While |
| the state-25 banks failed in 2009 in Georgia alone, | | | | manufacturing jobs are of the past, and the |
| according to The question is: are the people who | | | | housing market may never recover to the point |
| bought in certain neighborhoods and suburbs | | | | of wild speculation that it had before the |
| "safer" than others in terms of preserving their | | | | recession, information-based and creative positions |
| home value? After all, just as the unemployment | | | | will take their place. The workforce will be |
| rate does not ring true for people of every | | | | educated to meet the demands of the new |
| education background, so the neighborhoods in | | | | economy, and predatory lending should be sharply |
| Atlanta cannot possibly all be equal when it comes | | | | curtailed in all future endeavors. |
