Question:

Will anything be done about the deceptive ways so many folks were convinced to take a 24mos ARM?

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So many foreclosures. Three years ago our President told the country that there are more Americans owning their homes at that time than ever before, now we are being told that there are more Americans losing their homes than ever before.

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13 ANSWERS


  1. caveat emptor....parting fools and their money since 1817.


  2. I don't think anyone was convinced to take an adjustable rate mortgage for only 24 months.

  3. When will people admit personal responsibility for the decisions they make?

    One should not get a loan they cannot pay back.  Too many Americans budget based on the loan payments they think they can afford, hence their entire paycheck is eaten up by payments.  That is there personal decision to appear to be successful.  I choose not to do so and do not believe that my money should be used (even through taxes) to bail them out of their stupidity.

    Learn to manage your money and take responsibility for your own actions.

  4. Well this thing called personal responsibility can attribute to the foreclosure.  When taking out these loans one should know what to expect in the future.  A little homework could have saved trouble here.  

    The President aided in creating an economy where there could be more home ownership.  It is the responsibility of the owner to know the facts.  You get an ARM rates go up so does you load.   If you had a 2% loan and the rates go up 3 points it is not a 3 point increase it is a 150% increase.  This is a fact and it should be something the owner should know about their loan.  It is their loan.  The agreed to the terms in their load.  They need to be responsibile for their loan that they agreed to.

  5. Of course something will be done.  As mortgage defaults increase to the point where banks begin to feel threatened, the govt will produce a bail-out for the banks.  The people losing their homes will have the right to sleep under bridges or in gutters--as long as they don't get in the way.

  6. When will people FINALY take RESPONSIBILITY for their own actions?

    Whose fault is it when you buy a house you CANNOT afford?

    Why are you liberals ALWAYS looking to blame or sue someone when you are too stupid to think for yourself?

    I am sure the signature of the homeowner is on EVERY single contract.  If you failed to read the ENTIRE contract and signed it anyway, TOUGH!  If the mortgage company did something that is NOT in the contract then possibly they may be liable for something.

    Take RESPONSIBILITY for your OWN ACTIONS!!!!

  7. Those people were too stupid to realize that a balloon payment had to be made...  Instead of saving up for it, they went out and bought furniture, plasma tv's, hi fi stereos, etc...

    Now, it's a great time to buy fix'n'flips...  get it cheap from the bank, put a few grand into it, sell it off...

  8. Very good question and the causes are many.  A real estate agent might show a home to a buyer and say my friend in the mortgage business can make this dream a reality.  A lender might then have only a few loan products available for that buyer to select that the buyer qualifies for because of the price.  A borrower might want the lowest rate available and already be planning on refinancing again later on.  A lender might be selling a product they can make more rebate on and push a bad loan on an unsuspecting borrower.  The market when in a rapid growth cycle can lure many into thinking they can tap into equity and refinance later again.  Media promotes products that are often detrimental to ones actual needs and some are just misled from commercials.  Some borrow to pay off higher debt cards only to rack up new higher interest rate debt and begin the cycle again.  There is also a vastly higher number of incompetent loan officers, than there are ethical ones, and many fail to make proper disclosures.  When peoples security is in the balance they will accept things they might otherwise think twice about.  The Federal Reserve knows this and much of what we face today is from their manipulation of peoples emotional choices they have developed over time also.  There are also many people obtaining loans that should never have been approved to begin with.  It isn't the rates that undermine borrowers, it is the underwriting of files that should never have been approved to begin with.  Greed takes what it can, and reality sorts it all out later.  Will anything be done to make borrowers aware of the danger of a 24 month ARM ?  Likely not as while disclosure laws are being adjusted, the compliance remains with the dealers of the loans themselves.  Its a sales game to most lenders and a sign out front advertising 5.25 interest rate available gets more business than a sign showing a 6.675 fixed rate product.

  9. See, look. In a good capitalist country, when corporations are hurt by people, the corporations get a bailout and the people get ruined credit and maybe even jail time.

    When people are hurt by corporations... the corporations get a bailout and the people get ruined credit and maybe even homeless.

    Don't you know anything about America?

  10. There is inherent risk to every decision you or I make daily so for that reason, NOBODY should get a govt. bailout.  

    And anybody who signs a contract nowadays, regardless of what it is, and doesn't read the fine print (or pay someone to do it for them), is a moron.

    I have little sympathy for those who are losing their homes due to bad ARMs, but are deciding to keep the 2 SUVs (for commuting 5 miles to work), and the HD TVs they bought with equity loans.

    I also have little sympathy for the banks, mortgage firms, etc. who gave out these risky loans knowing fully that most people would eventually default on them.

  11. I don't know.  There have been a few cases adjudicated in favor of the home buyer - basically fraud cases.  The banks that wrote these loans are going out of business so what can the government really do - you can't penalize something that doesn't exist.

  12. It is ridiculous to blame anyone other than the homeowner for their lack of research prior to signing a contract.  People should always read what they sign and do a little research.  It is a simple thing to do.  If the people are living beyond their means and could not get refinanced prior to their interest rates going up, they need to accept that they messed up.  Stop trying to blame other people.  How about some personal accountability here?

  13. Hey, if people are big enough to buy a house they should be smart enough to not get fleeced.  Do all credit card companies charge the same rate?  People that were dim in the head have no one to blame but themselves.

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