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Mortgage meltdown: The lawsuits
http://money.cnn.com/2007/08/16/real_estate/here_come_the_judgements/index.htm?postversion=200708201 ^
| 8-20-07
| Les Christie,
Posted on 08/20/2007 9:56:04 AM PDT by Hydroshock
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To: Hydroshock
Agreed, but I expect to hear more of this. I remember reading of a county in TX were the banks could not foreclose on any property in the depression, the sheriff would not do it adn the county judges would not take part init as well. In a year or so will any jury find for the bank in these cases?McMansion exception?
21
posted on
08/20/2007 10:34:15 AM PDT
by
frithguild
(The Freepers moved as a group, like a school of sharks sweeping toward an unaware and unarmed victim)
To: Hydroshock
ARMs are for idiots, and that will soon be the mantra of many by this time next year. Idiots who want to save money. Right now the spread has come down, but it saved me a half of a point over 5 years when I did it, which more than justifies it. I have never stayed in a house more than 3 years. You can live in a bomb shelter with a security blanket if you wish. You have to base decisions on reality. You can't just make blanket statements and call everyone an idiot who does not agree with 'your reality'.
To: TexasCajun
I understand they even have interest-only mortgages available? Not only do they have them BUT many "Interest Only" loans DO NOT EVEN REQUIRE PAYMENTS WHICH COVER THE INTEREST!
THE UNPAID INTEREST IS ADDED TO THE PRINCIPAL EACH MONTH!!!
23
posted on
08/20/2007 10:37:19 AM PDT
by
ExSES
(the "bottom-line")
To: Always Right
And lose their homes. I saw a whole lot of ARM’s foreclosed on in the late 1980’s. An I am seeing it now on a larger scale. If you can not afford 120% of the total cost of a house on a 30 year or better yet 15 year fixed with 10% down it is to costly for you. ARM’s are gambling with your families financial future. I will not do that to my kids.
24
posted on
08/20/2007 10:37:57 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
To: ExSES
THE UNPAID INTEREST IS ADDED TO THE PRINCIPAL EACH MONTH!!! Just when I thought I'd heard everything.
To: Hydroshock
You base all your decisions on a paranoid reality. Just because a rate is adjustable does not make it more likely you will lose your home. For the first five years, it is less likely if you have a lower rate. Why do you insist that your reality applies to everyone???? It is STUPID to pay extra for a rate when you know you are gonna move. STUPID. End of discussion.
To: Always Right
When the rates are at historic lows which way will they go? Up. I for one will not gamble my family’s future on an ARM.
27
posted on
08/20/2007 10:45:24 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
To: Hydroshock
A 5-year ARM is FIXED for FIVE YEARS! I really don’t care which way the rates are going if I move anytime before then. Get it?
To: Always Right
So? Like I said I could have sworn on a stack of bibles I would be out of my current house in under 5 years, that was 6 years ago. Life does not always follow your plans and why take a chance this big with your family? Get it.
29
posted on
08/20/2007 10:58:04 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
To: Aquamarine
Just when I thought I'd heard everything. There are some really flakey mortgages out there and many are hiding within AAA rated CMOs courtesy of "generous" securities rating agencies! Is it any wonder that hedge funds (and other entities), when forced to account for what the value of their "TRUE ASSETS" is, no buyers can be found (thus giving their assets a immediate ZERO value?
It will be many months (hopefully not years) before an accurate picture of the extent of this problem will be revealed!
Just wait until all these "genious" portfolio managers are exposed as either careless idiots or outright crooks! All this after they collected exhorbitant fees for placing their clients' assets in "Gilded Junk"!
30
posted on
08/20/2007 10:59:33 AM PDT
by
ExSES
(the "bottom-line")
To: Hydroshock
I'm happy with my ARM, primarily because I did some simple math before signing on any dotted line. I got a fixed rate of 4.875 for 36 months. My rate can then adjust upward with a 2% annual cap, so beginning with my upcoming January payment, my new rate will be (at the most) 6.875%. Sounds high, right? My principal is currently $66,567. That means my interest payment will increase from $271 to $276. Five bucks a month.
31
posted on
08/20/2007 11:03:11 AM PDT
by
grellis
(Femininists for Fred!)
To: goldstategop
What more do banks need to do? Read the disclosures to the applicants? And they best get it on tape or else the shysters will go after them.
32
posted on
08/20/2007 11:04:39 AM PDT
by
NeoCaveman
("I mean, he's gone from Jane Fonda to Dr. Strangelove in one week." - Romney on B. Hussein Obama)
To: grellis
6.875%. Sounds high, right? No but in 10 years you could be paying 24.875%. Now that sounds high.
33
posted on
08/20/2007 11:13:38 AM PDT
by
Realism
(Some believe that the facts-of-life are open to debate.....)
To: Hydroshock
So? Like I said I could have sworn on a stack of bibles I would be out of my current house in under 5 years, that was 6 years ago. Life does not always follow your plans and why take a chance this big with your family? Get it. So, there are millions of people who do move within 5 years, but because you did not, everyone is stupid. Got it.
To: Always Right
And how many will get burned by not being able to move or not wanting? The risk is way to great to play with something so important to you family.
35
posted on
08/20/2007 11:19:37 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
To: Hydroshock
ARMs are for idiots Wow: Talk about a mile wide broad brush.
There are excellent ARMs provided people got them for the right reasons. I know someone very well who has a 7/1 ARM with a 4% interest rate that doesn't reset until 2011, by which time he planned on downsizing anyway, since the kiddies will all be done with college then, for several years. In fact, when he realized that money was essentially free in 2004 when he took out the mortgage, he borrowed more than he actually needed, and still has over 65% equity in his home.
36
posted on
08/20/2007 11:20:31 AM PDT
by
dashing doofus
(Those who are too smart to engage in politics are punished by being governed by those who are dumber)
To: Always Right
You are right, as always! ;-)
37
posted on
08/20/2007 11:20:57 AM PDT
by
dashing doofus
(Those who are too smart to engage in politics are punished by being governed by those who are dumber)
To: Hydroshock
5% fixed is one thing when your talking about a 175,000 dollar piece of real estate.
It’s quite another if it is a 375,000 piece!
38
posted on
08/20/2007 11:21:05 AM PDT
by
djf
(America welcomes immigrants! Sadly, America welcomes crimmigrants even more...)
To: Hydroshock
On a 5 year Arm, I would say real close to zero. You have zero tolerance for risk and see fear everywhere.
To: Always Right
Not zero, but I do not take cances when I do not have to. And I figure many will side with me afte rhte next 2 years.
40
posted on
08/20/2007 11:27:19 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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