[Centurion2000]

In the Philbrooks' case, John and Karen borrowed almost the entirety of the $244,000 cost of their modest North Highlands home: One loan was written for $195,000 at 6.375-percent interest; another financed the remainder of nearly $45,000 at 9.125 percent. The rate on the small loan was fixed. But on the large loan, the rate was fixed for only two years, and after that it was variable.

John said the Realtor who arranged the loan verbally assured him it would never go up by more than a quarter of 1 percent at any time. In fact, in the (very) small-print clauses attached to that loan were four poison-pill provisions.

Having not understood the small print of their contract, the Philbrooks were unaware that the loan’s rate would never be lower than its starting rate--meaning all the risk attached to the variable rate fell on them.

Idiots that cant read shouldn't be making real estate deals without a third party adviser helping them. I signed an enlistment contract ... after that I make sure I READ EVERYTHING and understand all of it before doing ANY deal.

These people were complete fools to agree to these terms. A little research would have save their lives.

[The Antiyuppie]

These people were fools, and they were INCREDIBLE fools for not even understanding their limitations and not hiring someone to represent them during the process. Can they READ? No one in their right mind would sign that contract.