Foreclosure.com Founder, President and CEO, Brad Geisen, had this to say in a high profile Associated Press interview back in June 2006 regarding the looming housing market crisis:

“Adjustable Rate Mortgages [ARMS]are a ticking time bomb. I’m pretty sure we’ll see a high volume of foreclosures.”

Bloomberg News columnist John F. Wasik today ran a story with the headline, “U.S. Mortgage Time Bomb Needs Defusing Yesterday,” saying the following:

“Of the $200 billion of these [ARM] loans outstanding, almost $30 billion is due to reset this year and $67 billion in 2010…. The resets inflict more trauma on the U.S. housing market. The average option ARM monthly payment will soar 63 percent — or $1,052.”

Brad and several other knowledgeable industry experts were able to see the “toxic mortgage” trouble coming several years ago even when the housing market was moving.

That’s because “balloon” loans are a big factor behind foreclosures, affecting millions of homeowners nationwide who become unable to afford their mortgages when interest rates “adjust” to higher percentages.

Unfortunately, it appears that the problem could continue well into next year if swift action is not taken — something that should have happened “yesterday” indeed.