The Wall Street Journal is reporting that defaults on so called 'Option ARM' mortgages are rising fast.

As of December, 28% of option ARMs were delinquent or in foreclosure, according to LPS Applied Analytics, a data firm that analyzes mortgage performance.

Nearly 61% of option ARMs originated in 2007 will eventually default, according to a recent analysis by Goldman Sachs

This is sobering news and indicates the bad news from the housing market is far from over.

Is the next shoe ready to drop in the Housing market?