As more people are running into trouble with their “exploding ARMs” and are faced with only 2 options — selling their house or going through foreclosure, they are running into another problem — the buyers are few and far between.

More homes on the market + fewer buyers = record low pending home sales in August.

According to the National Association of Realtors, the Pending Home Sales Index fell 6.5 percent to a reading of 85.5 from an upwardly revised 91.4 in July, based on contracts signed in August — 21.5 percent below the August 2006 index of 108.9. 

This August reading is the worst since January 2001, when the index was first started.

How long before these numbers turn around?  I don’t know.  But if you find yourself in the situation where your Adjustable Rate Mortgage has adjusted to the point that you can’t afford it — and before you give up and become another statistic (either joining the record low number of pending home sales or the record high number of foreclosures) — make sure you talk to someone about whether or not the FHASecure program could help you in your situation.