Posted on 09/20/2009 8:16:42 PM PDT by blam
WASHINGTON (Reuters) - The federal government and states are girding themselves for the next foreclosure crisis in the country's housing downturn: payment option adjustable rate mortgages that are beginning to reset.
"Payment option ARMs are about to explode," Iowa Attorney General Tom Miller said after a Thursday meeting with members of President Barack Obama's administration to discuss ways to combat mortgage scams.
(Excerpt) Read more at reuters.com ...
yup wheres the money?
AGAIN? You mean everyone who couldn’t afford their ARMS before still can’t? Even after renegotiating?
Fri Sep 18, 2009 3:00pm EDT
By Pedro Nicolaci da Costa - Analysis
NEW YORK (Reuters) - Financial markets are off to the races and Wall Street has all but declared victory.
A surge in prices for both risky and safe assets is alarming some analysts who say emergency rescue measures that helped markets rebound may be setting them up for a new fall.
But most institutional investors just aren't listening.
[snip]
Amazing, isn’t it?
>> Miller said option-ARMs were discussed at Tuesday’s meeting on mortgage scams, which brought state attorneys general from across the country together with U.S. Treasury Secretary Timothy Geithner, Attorney General Eric Holder, Housing and Urban Development Secretary Shaun Donovan, and Federal Trade Commission Chairman Jon Leibowitz.
I wonder if they discussed themselves? The Feds run the biggest mortgage scams of anyone, by far, and these jokers are the prime movers.
$1500 per month to 3500 per month. Sure. I can do it if I just cut back.
Yo! America! How’s that hopey changey thing workin’ out for ya?
Ping for later
Property prices in Estonia's Hanseatic capital of Tallinn have fallen by 59pc from their peak in the Baltic boom, a remarkable state of affairs for an EU country nestled against Russia on the most dangerous fault line in Europe.
By Ambrose Evans-Pritchard
Published: 6:52PM BST 20 Sep 2009
Cost per sq.m has dropped from €1,611 (£1,455) to €669 since April 2007, according to Ober-Haus Real Estate Advisors. Swedbank says up to 30pc of its mortgages in Estonia are in negative equity. Recent loans are in euros – not the local kroon.
Professor Ülo Ennuste from Tallinn University says the private net wealth of Estonia's people has fallen below zero. I know of no other country in the world where this has occurred, though Latvia may be deeper in hock. Estonia's foreign debt is 116pc of GDP, second highest in Eastern Europe.
[snip]
Here in SW Washington, the unemployment rate is 13.9%, and the longer that continues, there will be more defaults on mortgages of all kinds. Our real unemployment rate here has got to be well in excess of 20%, and if it gets too much higher we’ll be approaching anarchy.
Millions of people’s unemployment is about to expire unless the Federal Government borrows even more money from the Communist Chinese. The 12 Trillion pound Gorilla in the room is what happens when the Red Chinese decide to divest themselves of the Dollar, along with the Japanese, South Korea, Taiwan, Russia, Poland, et al...
For now you can still buy a 50 pound bag of US grown white long grain rice for about $20, and an airtight 6 gallon tub to keep it in for about the same. You can’t eat that $40 worth of gold...
One more step on the staircase that leads to the basement. We are going in the toilet, kids.
LOL
BOHICA...
TARP II.
Even though 90-ish percent of TARP 1 funds haven’t been used.
It will be a revolting development.
The market is going to crash in October and it’ll make the 1987 crash look like a picnic.
Ping!
An interesting report in the Los Angeles Times shows that a person with super-prime credit scores is more likely to walk away from an underwater mortgage than a person with a subprime credit rating.(OOPS)
Inquiring minds are reading Homeowners who 'strategically default' on loans a growing problem.
Who is more likely to walk away from a house and a mortgage -- a person with super-prime credit scores or someone with lower scores?
[snip]
We have been discussing whether or not to try and sell our home and get ready for really, really hard times. We have a great rate on a 30 year mortgage, and have never come close to not being able to make our house payment. What we’re worried about is not being ABLE to sell our home if our incomes should bottom out in a devastated economy, a ruined credit rating, and still having to walk away from our home and the equity in it.
It’s one thing to say, “everyone will be in the same boat,” but that won’t stop creditors and the IRS.
An option arm is where you decide what you want to pay and if it is less than the interest, the principle gets bigger. Then at some later date, you pay a traditional amount on the new balance/principle.
from the article:
The mortgages differ from other ARMs by offering an option to pay only the interest each month or a low minimum payment that leads to a rising balance in the loan’s principal.
When the balance of the loan reaches a certain level or the mortgage hits a specific date, the borrower must begin making full payments to cover the new amount. The loan’s interest rate also may have been fixed at a low level for the first few years with a so-called teaser rate, but then reset to a higher level.
Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying,
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