With many mortgages tied to the LIBOR (London Interbank Offered Rate) index, many of those payments will be going up. There are different indexes (ie, one month, 3 month, 6 month, etc), but the current one month LIBOR is at about 4.5% compared to just a bit over 4% one week ago.

What impact will all these re-sets have for the marketplace and foreclosures? Too early to tell, especially now that the Treasury has been tasked with buying back these “toxic” loans, and lenders will be under heavy political pressure from Washington to modify those loans into payments the homeowner can afford and sustain for the long haul.