ARM Freeze Yields Solution To All World Problems

RE:ARM Freeze Yields Solution To All World Problems

Anonymous in Arizona — Tue, 12 Feb 2008 13:00:00 GMT

This article makes me sick!!! While there are plenty of people out there, (possibly the majority) that were greedy and made a bad situation worse, those of us, who not so voluntarily were sucked into getting an ARM by sheisters taking advantage of a no win situation, are looking at how we can survive this mess. I for one represent those that were legitimately taken advantage of. I had been lured into signing something I disagreed with but was at risk to be in worse shape if I didn't "take the deal" at the hands of an unfair legal system. Oh this broker was the slickest. I'm sure there are many people out there just like me. I'm also sure that if you were one of the hundreds of thousands in this situation, subjected to the "sarcasm" you so blatantly sling in light of this situation you'd be livid. We are losing our homes! Don't you get it? I have always been a responsible, very careful person when it comes to finances. I refinanced a home I've lived in for 10 years with my kids, not a first time buyer looking to get more. Unfortunately, I trusted a coworker's husband, who is a mortgage broker who helped many of my fellow employees eventually lose thier homes. Oh he talked of saving money with a refi product that he deliberately kept to himself until signing. I never had an ARM. When I asked what this was, his exact words were, "think of this as a bandaid that I will personally help you fix later, just focus on getting some cash out and skipping a month or two of payments". Sometimes people find themselves in a situation they can't control, so they place faith in others to help. These weren't naive people, they are well educated professionals. It doesn't surprise me that the most of the posts agreeing with your "article" are agents, realtors, and brokers. Even if I truly took this situation of losing my home as strictly my fault and chalk it up as lesson learned, how does this affect others as mentioned by so many of the posts that disagree with you? My house goes back to the bank. They lose money. They're forced to sell for less than it's worth, or it sits empty and decreases property values surrounding it. I've watched sign after sign go up in front of houses, just spreading like wildfire the past two years, throughout the city of Phoenix and not get removed. I've watched familes get stagnated in the home they have, looking to upgrade for more room. They either take a loss to make a gain or just wait it out. This is a more serious problem than thinking that to just "just let the chips fall where they may" will remedy.

RE:ARM Freeze Yields Solution To All World Problems

Jeremy Hop — Wed, 23 Jan 2008 13:00:00 GMT

It figures a Realtor would post such a column. Hooking people with predatory lending is what caused this problem. Sure, we should have personal responsibility but can you throw a pile of candy in front of a child and expect him/her not to over indulge? I almost got hooked into a 5 Yr ARM by a shyster mortgage broker. All he was concerned with was his bottom line. He didn't even highlight the terms or explain them until I asked before signing. He said "Oh, the ARM won't reset for 5 years and won't go up too much". Wonderful, have a good day.

RE:ARM Freeze Yields Solution To All World Problems

Robh — Sun, 20 Jan 2008 13:00:00 GMT

Also, WHY WOULD REALTORS EVER BE BLAMED. A buyer wants a home, a realtor finds it and presents it to them. As long as the price was market price it's not the realtors job to make sure the whole housing market doesn't crash so borrowers can't refi. I'm a loan officer I would never blame a realtor, nor myself. Realtors and Loan Officers provide what the borrowers want. They want a home. It doesn't matter if we tell buyers/borrowers if they can't afford it, they still want there home. And sub-prime borrowers are the worst with wanting what they can't afford.

RE:ARM Freeze Yields Solution To All World Problems

Robh — Sun, 20 Jan 2008 13:00:00 GMT

Yes the borrowers are responsible, but don't forget that the lenders that wrote these guidlines ARE ALSO RESPONSIBLE!! The lenders agreed to these terms too, and should be aware that if home prices drop, these borrowers aren't going to be able to refi or make make the payments! DUH!!! If you double the borrowers payment already at 55% DTI (or higher with a stated loan) there is no way in hell the payment will get paid. I DISAGREE with this article. A good comprimise instead of both parties on the mortgage note losing everything is fixing the rates. The lenders get some return insteda of losing 50% on a forclosure and the borrowers can keep there home. When the market improves as it will maybe a lien added to the property can help the lenders down the road to make up the difference. THERE HAS TO BE BETTER WIN WIN THEN A LOSE LOSE. If the governement has to facilitate something to make a comprimise then it's worth it. Who else is going to make these negotiations.

RE:ARM Freeze Yields Solution To All World Problems

Paul Silver — Thu, 10 Jan 2008 13:00:00 GMT

Unfortunately, the only law you discuss that actually can have any teeth in it is the one you are criticizing... legislating for the preservation of property to owners who cannot afford it can actually have an real impact... the other laws are toothless, as they would have no impact at all... A better example would be some law that legislates that the government stay within budget, by law... that could be enforced... the others are ridiculous... sorry to say... But we get the point...

RE:ARM Freeze Yields Solution To All World Problems

brian — Wed, 09 Jan 2008 13:00:00 GMT

You have to consider that homeownership would not have been at an all time high if it wasnâ€™t for many of these products. Todayâ€™s guidelines were invented in the 50â€™s for Ozzie and Harriet who are now dead. Because of creative financing many people who could never have gotten into a home were able to. Unfortunately since Conforming guidelines are so strict and such low loan amounts, it forced many borrowers into stated loans giving them an even higher payment. Today the guidelines are even more strict making it even harder for people to keep their home. Not everyone got burned or is upside down in their home. At the end of every cycle there is a group holding the bag. Just like the last group of investors who buy a stock at its high point and then the stock drops. Donâ€™t get me wrong, I know that there are many people in the business that should not be and it hurt all the responsible, professional people in the business.

RE:ARM Freeze Yields Solution To All World Problems

Mike — Tue, 08 Jan 2008 13:00:00 GMT

The article was right on. I wouldn't expect the goverment to bail me out if I make a bad investment in the stock market & thats just what these borrowers did. They speculated home prices would rise and they didn't. Not my problem.

RE:ARM Freeze Yields Solution To All World Problems

Marty S — Mon, 07 Jan 2008 13:00:00 GMT

In reference to: "If Lenders never created these loan products in the first place we wouldn't have this problem." Lenders created products to meet the demands required of borrowers. If the borrowers didn't want these loans, they would not exist. The greed of the borrower in conjunction with the borrowers refusing to buy homes they could actually afford set up the perfect storm scenario. I want, I want, I want....that is all we heard from borrowers.

RE:ARM Freeze Yields Solution To All World Problems

K-legal — Mon, 07 Jan 2008 13:00:00 GMT

Tspence..I totally agree with you!! I, also, am affended by this article...Donna you so did not nail this one on the head. You're article is completely biased and one-sided. What a shameful article to read!!!!

RE:ARM Freeze Yields Solution To All World Problems

SteveInBrownstown — Sat, 05 Jan 2008 13:00:00 GMT

Who's responsible? Everyone deserves a bit of blame! Regarding creative/adjustable products - am I the only one who can program a spreadsheet to show forecasts of payments? It's not rocket science to show 3% (or whatever) growth in income each year over X years, and max interest rates over the same X year period. Every REALTOR should have provided their buyer with this no-brainer forecast sheet. Smart choice or not, at least the REALTOR would have done their duty and informed their buyer.

RE:ARM Freeze Yields Solution To All World Problems

Tspence — Thu, 03 Jan 2008 13:00:00 GMT

I took offense to the article. I think your demeanor was very condescending. I think there are some things seasoned mortgage/real estate people don't understand and I think people took these loans as a break and hoped that their situation would improve. Yes, they knew the risks but many of you are not buyer advocates, you're predators who don't care. It's unfortunate that there are so many people in this situation because of this. Sharks.

RE:ARM Freeze Yields Solution To All World Problems

Jenny — Tue, 01 Jan 2008 13:00:00 GMT

If Lenders never created these loan products in the first place we wouldn't have this problem. Because of their greed, they offer a false hope, or as they call it, an opportunity to live the American Dream. People who desire so much to live this dream fall prey to these predators.

RE:ARM Freeze Yields Solution To All World Problems

Justin — Mon, 31 Dec 2007 13:00:00 GMT

During the refinance boom I tried my hardest to put my clients in 30 year fixed mortgages. But all I got in response is, "I want that rate...Ameriquest is offering this rate..." We hear it and say it all the time in our industry but if it hasn't branded the Mortgage Industry now then it never will..."Price is what you pay, Value is what you get."

RE:ARM Freeze Yields Solution To All World Problems

Ruben B. Austria — Mon, 31 Dec 2007 13:00:00 GMT

Donna, this is a great article. I own a mortgage company in Boston, MA and I can't agree with you more on your opinion about personal responsibility. Everyone should be responsible for their own life, regardless of all the outside circumstances. I talked about your article in my podcast. Make it a great day! Ruben from renewsyoucanuse.com.

RE:ARM Freeze Yields Solution To All World Problems

Caring Real Estate Agent — Sat, 29 Dec 2007 13:00:00 GMT

The burden is not on the person getting the loan it is on the person advising on the loan. Lets call it they way it is, a first time home buyer has no knowledge of the mortgage lending business and that is the reason why they come to realtors and mortgage brokers(The Professionals). It is our fudiciary duty to look out for the best interest of our clients and not just try to get them a loan to make money. If we were held accountable then the mortgagees would not be in such a rut!