Comments on: A Second Mortgage Disaster On The Horizon?
60 Minutes: New Wave Of Mortgage Rate Adjustments Could Force More Homeowners To Default
Add a Comment See all 215 Comments
- Hope China is the one that has these loans maby they will come and get the crooks i HOPE
- Reply to this comment
- So you have a $300,000 mortgage on a house that is worth $275,000. Your payment is $1500, and a similar house down the street is up for rent at $750 a month.
The only question you have to ask yourself is "Do I really need credit?" - Reply to this comment
- It is true that in the "old" days, ARM loans were based on the treasury rate plus a margin of 2-5 percent. If you look at the new generation of magic ARM loans, the margin is sometimes as much as 9% above prime. Additionally they can now jump to the higher rates at the first change rather than being increased incrementally. A loan with a teaser rate of 2% in 2005 could now jump to 9%, even if the prime rate drops to zero. That would equate to an increase of more than $1500/month on a $300K loan. (and a $150K house... )
- Reply to this comment
- The story tonight was riht on the mone.
I was responsible for selling these loans to brokers accross the country and then who then sold them to the public. our bank then sold them off to bigger institutions like Bear Sterns and Countrywide who sold them to investors on wall st. I left in 07 when i saw the writting on the wall before they were seized by the FDIC. I am now helping the people that are in trouble by helping them keep from etting the shaft from their bank when they try to re structure their loan under the govt. mandated modification sugestions. I have heard some real horror stories from folks that went out of the fryin pan into the fire when the bank mosified the loan WITHOUT lowerin the interest rate! - Reply to this comment
- Makes you chuckle when these guys wake-up after
leaving the edge of the cliff. No mention of lay-offs,
and they will be massive. Wonder if we will ever
recover from this mess. - Reply to this comment
- This Tilson guy sounds like a doomsayer, and CBS News has fallen for it. I''m not qualified to say that everything is rosey, but I agree with the responses here that point out that mortgages will reset at historically low rates and that every reset won''t lead to foreclosure.
- Reply to this comment
- This is an easy one: the bank''s "RESET" dates will just need to be canceled. Haven''t we paid them enough? Like trillions??? Enough, already.
- Reply to this comment
- You got a problem with the financial collapse?
Send a thank you note to Ronnie Reagan, address, Hell.
Ronnie, you lying draft dodger.
--------------------------------------------------------------------------------
Posted by jbrown88881
AMEN!
Ronnie RayGun trickled down! - Reply to this comment
- What I don''t understand is, why does everyone assume that the ARMs are going to reset at a higher rate? I have a HELOC that was at nearly 9% in 2006, that is now at less than 4%.
I also have a ''sub-prime'' mortgage (I bought my house as I was coming off 14 months of unpaid maternity leave), I did a 101% no-doc loan. I''m fine as long as I''m employed & have been paying extra on it. But my 1st mortgage is a 5/1 loan at 8.6%... I fully expect it to reset for less than that when the 5 yr fixed rate period is up. Perhaps I''m naive but I would think there are a lot of people like me who are waiting for the fixed period of their loan to end! - Reply to this comment
- It appears to me that you need to dig a little deeper. ARM''s adjust based on a 1YR TBILL Index (.69)+ a margin of 2.00 to 5.00% Rates moving forward for these borrowers will be 2.75 to 5.75%.Historically low and affordable. Please check your sources. Your reports have a tremendous impact on the US housing market.
- Reply to this comment
- Do 60 Minutes do even basic research on their "experts" before quoting someone???
NEW YORK (Reuters) - Hedge fund T2 Partners LLC on Monday for the first time was buying distressed U.S. mortgage securities on bets that losses on underlying loans will fall far short of expectations, founder Whitney Tilson said.
"For the first time in our 10-year history we are buying distressed debt, and we are selling equities to do it, Tilson said at the Reuters Investment Outlook Summit in New York.
From Forbes article Dec 8.
This completely contradicts what Tilson says in the interview where he is bullish on equities and very negative on the housing market.
Something very, very strange here. - Reply to this comment
- What I don''t understand is, why does everyone assume that the ARMs are going to reset at a higher rate? I have a HELOC that was at nearly 9% in 2006, that is now at less than 4%.
I also have a ''sub-prime'' mortgage (I bought my house as I was coming off 14 months of unpaid maternity leave), I did a 101% no-doc loan. I''m fine as long as I''m employed & have been paying extra on it. But my 1st mortgage is a 5/1 loan at 8.6%... I fully expect it to reset for less than that when the 5 yr fixed rate period is up. Perhaps I''m naive but I would think there are a lot of people like me who are waiting for the fixed period of their loan to end! - Reply to this comment
- This makes me sick! Congress is spending our money like its water. I can see if a both lose their jobs or a serious illness strikes there should be a safety net to help people not lose their homes. But simply because someone was crazy enough not to get a fixed rate or bought way above their means?!!. Not reading the papers your signing?? Whats next the government covering gambling wages in Vegas with our tax dollars? We didn''t buy a house till we saved enough to get a fixed rate and could afford the payments with one income. Its called using your head. This country is going broke and being bought up by China. Sad times.
- Reply to this comment
- I only wish this sort of reporting was done years ago instead of now ... maybe if some light had been shed on all these crazy mortgages years ago, this country would not be in the financial crisis they are in now. But it''s all water under the bridge; the question now is what do we do to get out of it ?
On a personal note, it''s nice to "know" that there are tougher times ahead before it gets better - I won''t be transferring my 401k into anything but low-risk funds for at least another year or so. Short-sighted, perhaps, but safer for sure. I don''t know if I could afford to lose another 20%. - Reply to this comment
- This is irresponsible reporting. You are interviewing people with a stake that you are not reporting. Creating panic is not something tht a responsible news organization like CBS should be doing.
- Reply to this comment
