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Originally Posted by Karsun
I agree they should pay what they owe but I'm wondering about something I heard. Supposedly there's a lot of forclosures right now cause people got great ARM rates and then when it came time to change it, some people's payments tripled. So perhaps they were paying $1000 per month and could afford it and now it's $3000. I can understand wanting to take all you have cause I can't imagine losing your home.  I always said that before I allowed a vehicle or my home to be forclosed that I'd do whatever I could to keep it, even if it meant working 4 jobs or whatever. I think I'd walk the streets first, you know? Even before we had some money (we're not rich by any means but do make more than we ever have) we never had anything repossessed or forclosed. I do feel sorry for some of those people. Like I said, it's gotta be one of the most awful things to lose your home. |
In most cases youll not find the payment has tripled but it has increased...more along the lines of the $1,000 payment going to $1,300 or so. Many people entered into ARMs under the assumption their property would continue to increase in value and they would simply refinance down the line and keep a similar payment and roll in closing cost so there is no"out of pocket" expense. In the mean time the real estate market has become soft and the house will not appraise out for teh existing mortgage much less roll in closing cost and they are stuck like chuck. This same person may very well have purchased another house or two in the mean time speculating they would hold onto it for a couple years, then sell for a large profit. Now the problem is really compounded as this house payment has adjusted as well and they are either unable to rent the house out or are taking less than in previous years for rent. In addition, according to the current market value they have several hundred thousand in negative equity! Ok, now what? Im seeing a fair share of this.
For the good news; housing prices are beautiful and conforming loan rates are at their best in over 2 1/2 years!!!!!!!!
