Adjustable Rate Mortgages

[JoeChalupa]

Is anyone feeling the pinch due to an adjustable rate mortgage? I've been seeing quite a few news stories about families mortgage payments going up as much as 1K a month!!
They predict that almost half of those with adjustable mortgages may have lose their homes. Some say they didn't really read all the details and now they are screwed.
I hope anyone effected by this can work something out but from I've heard the mortgage companies are not willing to talk.

[Das Texan]

People are generally idiots and dont think of anything but what seems to be awesome at the time.

With adjustable rate mortgages you have always been playing with fire, sometimes you win, sometimes you lose. Its cyclical and now they are getting it.

[Sapphire]

Well, last year when we bought our house, it took 3 rounds of paperwork before they got it right--they kept writing up our loan as an ARM. We kept refusing, so they'd go back and "fix" it, and lo and behold, it would come back written up as an ARM again. :wtf I guess they thought we'd just assume they must have it right this time, and not read it. I wonder how many people got taken that way. It's pretty sad--I know there are a lot of people out there that were just thrilled to get in a home and actually signed for the adjustable rate, but there are probably just as many that were just in over their heads (smarts-wise) and signed whatever the hell was put in front of them.

[SequSpur]

Well, last year when we bought our house, it took 3 rounds of paperwork before they got it right--they kept writing up our loan as an ARM. We kept refusing, so they'd go back and "fix" it, and lo and behold, it would come back written up as an ARM again. :wtf I guess they thought we'd just assume they must have it right this time, and not read it. I wonder how many people got taken that way. It's pretty sad--I know there are a lot of people out there that were just thrilled to get in a home and actually signed for the adjustable rate, but there are probably just as many that were just in over their heads (smarts-wise) and signed whatever the hell was put in front of them.

cause you ain't paying yo bills on time.

[TDMVPDPOY]

those money lenders that do mortgages dont give a shit anyway, even if there are laws that protect consumers from repayments

they just kick you out, resell the house at market value, laughin all the way to the banks

[Sapphire]

cause you ain't paying yo bills on time.

Um, how about no?

[RuffnReadyOzStyle]

Well, last year when we bought our house, it took 3 rounds of paperwork before they got it right--they kept writing up our loan as an ARM. We kept refusing, so they'd go back and "fix" it, and lo and behold, it would come back written up as an ARM again. :wtf I guess they thought we'd just assume they must have it right this time, and not read it. I wonder how many people got taken that way. It's pretty sad--I know there are a lot of people out there that were just thrilled to get in a home and actually signed for the adjustable rate, but there are probably just as many that were just in over their heads (smarts-wise) and signed whatever the hell was put in front of them.

That's criminal and they should be reported to the Consumer Commission (if the US has one) for misrepresentation. Those sort of dishonest practices lead to all sorts of problems - broken homes, general misery, depression, suicide, etc. and should be utterly stamped out. That's why we have GOVERNMENTS - they are meant to regulate markets and stamp out this sort of behaviour (ie. exploitation of people's gullibility), but they don't because big business owns the government in the modern world, not the people. :pctoss Thankfully, you were smart enough not to fall for the trick.

Someone in the political forum, Scott (he's the economics lecturer?) predicted this current credit crunch and its origins 18 months ago. Kudos. :tu

[johnsmith]

I don't know why it's so shocking to everyone. People financed on ARM's when rates were at their all time low. What the hell did they think was going to happen?

[boutons_]

"That's why we have GOVERNMENTS"

St Ronnie, as President of the govt, said, and all conservatives since say GOVT IS THE PROBLEM. The current Repugs "prove" govt is bad by intentionally governing badly, to turn people against govt.

[johnsmith]

"That's why we have GOVERNMENTS"

St Ronnie, as President of the govt, said, and all conservatives since say GOVT IS THE PROBLEM. The current Repugs "prove" govt is bad by intentionally governing badly, to turn people against govt.


Oh Good God, shut the fuck up!

[Sapphire]

I don't know why it's so shocking to everyone. People financed on ARM's when rates were at their all time low. What the hell did they think was going to happen?

That's the problem, unfortunately. A lot of people didn't understand them and had no idea what was going to happen. Should they have been signing paperwork they don't understand? Of course not. But greed on the realtor/mortgage brokers part, and wanting-to-own-a-home-even-if-they-couldn't-afford-one on the homeowner's part made for some very poor situations. We are now seeing the results of that, and I think we're just at the tip of the iceberg.

[JoePublic]

That's criminal and they should be reported to the Consumer Commission (if the US has one) for misrepresentation. Those sort of dishonest practices lead to all sorts of problems - broken homes, general misery, depression, suicide, etc. and should be utterly stamped out. That's why we have GOVERNMENTS - they are meant to regulate markets and stamp out this sort of behaviour (ie. exploitation of people's gullibility), but they don't because big business owns the government in the modern world, not the people. :pctoss Thankfully, you were smart enough not to fall for the trick.

Someone in the political forum, Scott (he's the economics lecturer?) predicted this current credit crunch and its origins 18 months ago. Kudos. :tu



So did the lovely Erin Burnett and many others. But Scott is one of the best posters in the political forum and he has the education and resume to back it up.

[degenerate_gambler]

I read an article that I believe was in the local fishwrap that said ARM's weren't biting people in the ass in TX like they are in other parts of the country.

If I have some time, I'll see if I can dig it up.

[JoeChalupa]

I read an article that I believe was in the local fishwrap that said ARM's weren't biting people in the ass in TX like they are in other parts of the country.

If I have some time, I'll see if I can dig it up.

I heard that as well. :tu I saw that a few protest groups have been assembled to go against some mortgage companies but legally they don't have a leg to stand on. They signed the dotted line.

[fraga]

ARM Loans are the devil...people should avoid them like the plague...anyone who got one...probably had no business buying a house in the first place...save up your money...and get a real....FIXED loan...and remember.......don't do drugs...

[BacktoBasics]

cause you ain't paying yo bills on time.Each new day brings something fresh and idiotic from you.

[tlongII]

Caveat Emptor : Means "buyer beware". I would never sign for an ARM. The problem is that there are a lot of stupid people in the world.

[JoeChalupa]

I guess it would be a good deal if you are financially able to handle the increase in home payments if the rate goes up but I hear some who would not have qualified for a higher fixed rate did qualify for a lower ARM and now they are feeling the pinch.
But I'm no Erin Burnett, Jim Kramer or Scott.

[BacktoBasics]

I could be off or wrong but if I remember correctly the people who were getting into ARM's were people who couldn't qualify for zero down deals and couldn't afford the 2-4% down payment plus closing costs to get a fixed rate. I agree with the post above "people are pretty fucking stupid these days".

[JoeChalupa]

I could be off or wrong but if I remember correctly the people who were getting into ARM's were people who couldn't qualify for zero down deals and couldn't afford the 2-4% down payment plus closing costs to get a fixed rate. I agree with the post above "people are pretty fucking stupid these days".

I believe you are correct.

[Wild Cobra]

Check out John Edwards $16,000,000 connection with ARMS. In the politics section:

http://spurstalk.com/forums/showthread.php?p=1961434#post1961434

Look for post #51, it has some related links.

[SpursWoman]

Each new day brings something fresh and idiotic from you.


He's not totally wrong ... ARM loans are typically a way for people with not so great credit (not paying their bills on time) to get into a house to begin with, and most likely represent the majority of people that have them. And these loans (because of the credit history) generally start at 7-9%, and can go upwards of 16% percent after the term of the fixed rate.

Could you imagine having to pay 16% on a $100,000 mortgage? :wow

[Extra Stout]

Well, last year when we bought our house, it took 3 rounds of paperwork before they got it right--they kept writing up our loan as an ARM. We kept refusing, so they'd go back and "fix" it, and lo and behold, it would come back written up as an ARM again. :wtf I guess they thought we'd just assume they must have it right this time, and not read it. I wonder how many people got taken that way. It's pretty sad--I know there are a lot of people out there that were just thrilled to get in a home and actually signed for the adjustable rate, but there are probably just as many that were just in over their heads (smarts-wise) and signed whatever the hell was put in front of them.
I would not have closed on that house if the mortgage company were doing that. That proves they were trying to deceive you. If they tried to do that to you at signing, there is no telling what else is up their sleeve. You will have to monitor very closely everything they try to change until you sell that house.

[BacktoBasics]

He's not totally wrong ... ARM loans are typically a way for people with not so great credit (not paying their bills on time) to get into a house to begin with, and most likely represent the majority of people that have them. And these loans (because of the credit history) generally start at 7-9%, and can go upwards of 16% percent after the term of the fixed rate.

Could you imagine having to pay 16% on a $100,000 mortgage? :wowI understand what you are saying but his statement was too broad and too sarcastic to take seriously. Too be quite honest I don't think he's smart enough to make a statement like that expecting us to read between the lines. I refuse to give him that kind of credit.

[Sapphire]

I understand what you are saying but his statement was too broad and too sarcastic to take seriously. Too be quite honest I don't think he's smart enough to make a statement like that expecting us to read between the lines. I refuse to give him that kind of credit.

And it was directed at me, someone he doesn't even know, so he's talking out of his ass.

[Nbadan]

So did the lovely Erin Burnett and many others. But Scott is one of the best posters in the political forum and he has the education and resume to back it up.


Scott!

:lmao

...Scott also wanted to make fuel out of people......

[Cant_Be_Faded]

ARM's are part of what makes america great.


bop