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  #1  
Old 11-13-2007, 11:47 AM
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CA and ARMS causing me to re-think my position.....

How many of you know people who have been forclosed due to an ARM through business or personal life? I know one guy who lost about 25 rentals. I know two individuals who were actually able to reaffirm ARMs while in bankruptcy on their own homes.

Then I hear on the news this am that 40% of the ARM forclosures in Southern California are investors, not primary home owners.

I hope when the .gov finalizes its finger in the dyke strategy for this, well 'bailout-type' solution, it takes the investors out of the picture--gambling is gambling. OTOH, if I had to get an ARM to put a roof over my childrens heads.

Have I just missed the thought process or have you all considered that a lot of these loans were speculators all along? WTF?

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  #2  
Old 11-13-2007, 11:49 AM
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JD, I've heard similar atories. People refinancing their primary residences in some cases to get cash for investing in either vacation homes or rental properties. I would NEVER do that, but I seem to be much more risk-averse than a lot of folks I know.
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  #3  
Old 11-13-2007, 11:57 AM
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I've had an ARM line of credit for over 20 years and it's done me well. I've used it to finance my business and make improvements on my home. Those that have been burnt didn't read the fine print or just made plain bad decisions.
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  #4  
Old 11-13-2007, 12:01 PM
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Well, that's true. I have a line of credit secured by my house too. I use it VERY judiciously, though.

I prefer to make large purchases using the item purchased as the collateral, not my primary residence.
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  #5  
Old 11-13-2007, 12:47 PM
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Qick! Let's raise income taxes before they all go bankrupt!

B
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  #6  
Old 11-13-2007, 12:50 PM
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Good idea. This just proves that most Americans really aren't competent to manage their own financial affairs. Congress is MUCH better suited for such things!
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  #7  
Old 11-13-2007, 12:54 PM
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Quote:
Originally Posted by Dee8go View Post
Congress is MUCH better suited for such things!
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  #8  
Old 11-13-2007, 12:59 PM
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Quote:
Originally Posted by John Doe View Post
How many of you know people who have been forclosed due to an ARM through business or personal life? I know one guy who lost about 25 rentals. I know two individuals who were actually able to reaffirm ARMs while in bankruptcy on their own homes.

Then I hear on the news this am that 40% of the ARM forclosures in Southern California are investors, not primary home owners.

I hope when the .gov finalizes its finger in the dyke strategy for this, well 'bailout-type' solution, it takes the investors out of the picture--gambling is gambling. OTOH, if I had to get an ARM to put a roof over my childrens heads.

Have I just missed the thought process or have you all considered that a lot of these loans were speculators all along? WTF?
Its not the traditional conforming owner occupied 5/1 3/1 arm's that are causing the problems since they traditionally rise about 1% max (caps) its the non conforming option and subprimes that are getting people into trouble. People have been playing Russian Roulette with the Option ARM's especially in California because once the values started to fall they could not refinance and are currently getting jammed 9% above the start rate. They don't have any equity so they think its easier to foreclose, I have news for those people....the banks will come after you with a vengance and if there are any inaccuracy's on the application to get the loan bankruptcy won't help because the prosecutor will be on your ass.

The cases are just starting to hit the prosecution dockets now, the time to be served is ranging from 1-8 years.
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  #9  
Old 11-13-2007, 01:03 PM
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Quote:
Originally Posted by Botnst View Post
Qick! Let's raise income taxes before they all go bankrupt!

B
I just a check from my mortgage company for taxes overpaid in escrow this year. Manna from above. Are the taxpayers going to pay for the "bail out?"
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  #10  
Old 11-13-2007, 01:08 PM
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I just a check from my mortgage company for taxes overpaid in escrow this year. Manna from above. Are the taxpayers going to pay for the "bail out?"

Property taxes are local and don't have anything to do with the Feds.
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  #11  
Old 11-13-2007, 01:12 PM
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Property taxes are local and don't have anything to do with the Feds.
I know but are the taxpayers somehow going to have to pay for the bail out?
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  #12  
Old 11-13-2007, 01:41 PM
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I don't see to many around here. Most forclosures in CT are in one of the Havens, Waterbury, or Bridgeport.

A lot of investors lost crappy multi family's in New Haven. I can buy 2-3 families that sold for $200kish all day for $150k. But they suck, they are not worth $150k, very overvalued. You would need to wear a vest and carry a gun to collect rent.


I come across maybe one foreclosure in Milford a week, none of them are deals for investment purposes. If you want to live in it they are decent buys. They all owe to much, no room to make money.
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  #13  
Old 11-13-2007, 01:55 PM
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The Washington Post is full of foreclosure notces everyday. It's sobering to see pages and pages of those . . .
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OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
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  #14  
Old 11-13-2007, 02:02 PM
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Quote:
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I know but are the taxpayers somehow going to have to pay for the bail out?
Only if big business is the bailee.
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  #15  
Old 11-13-2007, 02:14 PM
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I was a little apprehensive about coming out of a 3 year sub-prime ARM this spring. I used it to run a bridge mortgage between the house in Texas and the one we bought in Mississippi. Surprisingly everything went smooth, good fixed rate, no hassles.

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