Comments on: A Second Mortgage Disaster On The Horizon?
Add a Comment
- the problems this country has and continues to have, financially and socially, are to numerous and big for anyone to put their arms around. this has been coming for 40 years, it''s about time. the only way to bring some normalcy to this country is for a total collapse...bout time
- Reply to this comment
- Bring it back and you will see many more families able to stay in their homes for another 5 years while we hopefully pull out of this downturn.
Posted by TheBaroness1 at 10:58 PM : Dec 15, 2008
Or better yet, people burdened with over-priced mortgages from smooth talking loan officers could simply walk away leaving the sharks to feed on themselves. - Reply to this comment
- "You''''re hind sight is 20/20... but its a little late for that now... There should have been rules in place that kept peopel from borrowing more then they can afford so this never happened.
Obviously you still believe in humanity and don''''t see greed and those that coventh... Without rules that loan money to what a person can afford we have 2 problems. Those living beyond their menas, and the effect it has on drving up the cost of home prices. This followed by more people borrowing more to afford those same homes and the snowball effect is in play."
-----
Those rules existed and worked well for decades. Then came the community reinvestment act and it did away with those rules. - Reply to this comment
- It is hard to stimulate anyone to spend money with stories like these, predicting further doom. I just finally paid off all my credit card debt and now only have a mortgage, a truck, and a small home-improvement loan to pay off. My husband has a good job, pretty recession proof, so we should be safe but these stories really make it seem we are not safe from financial disaster. I have no idea what to think the next year will bring for myself, let alone people who are really poor and in trouble. Is this story really useful? Or does it just make people who have no control over these things panic?
- Reply to this comment
- Notwithstanding the impact of option ARMs and Alt-A financing, what does the climbing unemployment rate portend for the housing market? It''s hard to find much of a silver lining anywhere. The mantra of "Jobs, jobs, jobs" seems as key to the real-estate business as its traditional, "location, location, location," axiom. It''s looking more and more as if massive government intervention in this area will be necessary too. Given everything that''s going on, it''s hard not to wonder when-- rather than if-- we will sink into another Great Depression.
- Reply to this comment
- As a loan officer and financial advisor, I used the Option ARM almost exclusively until its disappearance in the past 12 months. When clients come back to me to refinance, only now can I offer rates as low as their option ARM. If you amoritize closing costs, there is no logical reason to refinance. If you only paid minimum payment, your loan grows, so if you can pay more,make the 15 or 30 year payment while rates are down. When rates go up, you will have less to base the payment on. Historically the index has been low because of the security it is linked to. This loan has allowed people time to get their financial houses in order, instead of plunging into immediate foreclosure with a fixed rate mortgage where there is no flexibility in payment. The bad rap on this loan is made out of ignorance of how the vehicle works. Bring it back and you will see many more families able to stay in their homes for another 5 years while we hopefully pull out of this downturn.
- Reply to this comment
- I somewhat agree with you, but I know as a lender for a institute that scrutinizes everything from job history to residential history that by the time I get through the process of verification that a borrower will usually seek out the path of least resistance even if the borrower has to pay a prime in interest rates.
- Reply to this comment
- The borrower is just as much at fault as the lender and don''''t think for a minute that the borrower was concerned with the so called teaser rate when they walked out with a loan. It''''s time for America to live within its means and stop trying to keep up with the Jones.
Posted by readdis
--------------------------------------------------------------------------------
You''re hind sight is 20/20... but its a little late for that now... There should have been rules in place that kept peopel from borrowing more then they can afford so this never happened.
Obviously you still believe in humanity and don''t see greed and those that coventh... Without rules that loan money to what a person can afford we have 2 problems. Those living beyond their menas, and the effect it has on drving up the cost of home prices. This followed by more people borrowing more to afford those same homes and the snowball effect is in play.
there is nothing that can be done but the pain will be felt by everyone including people like us who have lived well within their means...
they screwed us all in the name of greed. - Reply to this comment
- The borrower is just as much at fault as the lender and don''t think for a minute that the borrower was concerned with the so called teaser rate when they walked out with a loan. It''s time for America to live within its means and stop trying to keep up with the Jones.
- Reply to this comment
- I VIEWED THE PIECE BY SCOTT PELLEY ON MORTGAGE MELTDOWN. I CAN''T FIGURE WHY THE MEDIA IS CONSISTANTELY OVERDOESING THE PUBLIC WITH NEGATIVE INFORMATION SUCH AS THIS. YES THERE IS A CRISICS; HOWEVER BALANCE YOUR REPORT WITH ALL OF THE NEW BUYERS THAT ARE ENTERING THE MARKET BECAUSE IN SOME AREAS REAL ESTATE PRICES HAVE BEEN CUT IN HALF.
- Reply to this comment
