Pay Option ARMs - The Implosion Is Still Coming Despite Low Rates

"There is some serious Pay Option ARM (POA) misinformation going around. Everywhere you look there are stories about how the low index value on the LIBOR will automatically ‘fix’ Pay Option ARMs and drop borrower’s payments to almost nothing. Sorry folks, no cigar. Like the failed mortgage modification efforts and foreclosure moratoria you read about almost daily, this will be a non-starter for most."