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?

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.

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

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
2016 AMG GTS 12,000 miles

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.

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.

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

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
2016 AMG GTS 12,000 miles

Qick! Let's raise income taxes before they all go bankrupt!

B

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!

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

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
2016 AMG GTS 12,000 miles

snicker

__________________
1998 E300 +310,000K
1996 E300 +460,000K

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.

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?"

__________________
"It's normal for these things to empty your wallet and break your heart in the process."
2012 SLK 350
1987 420 SEL

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?

__________________
"It's normal for these things to empty your wallet and break your heart in the process."
2012 SLK 350
1987 420 SEL

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.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

The Washington Post is full of foreclosure notces everyday. It's sobering to see pages and pages of those . . .

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

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
2016 AMG GTS 12,000 miles

Only if big business is the bailee.

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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