Foreclosures May Jump As ARMs Reset
Posted by admin / Under Adjustable Gastric Band
Foreclosures May Jump As ARMs Reset By J.W. ELPHINSTONE NEW YORK - In 2003, Anita Britten refinanced her two-story brick cottage in Lithonia, Ga. using a hybrid adjustable rate mortgage, or ARM. Her lender reassured her that she could refinance out of the riskier loan into a traditional one when her interest rate started to reset. Three years later, Britten can't get a new mortgage and her monthly payment has jumped by a third in six months. She can't afford her payments and may face foreclosure if her financial situation doesn't change. As more ARMs adjust upward and housing prices...
Published on Monday 6th of September 2010 06:11:40 PM
Hybrid Loan Time Bomb (Do you have an ARM mortgage?)
Posted by admin / Under Adjustable Gastric Band
The HeraldTribune is reporting the clock is winding down on the Hybrid Loan and Sub-Prime mortgage time bombs. Starting in 2006 and accelerating into 2007, as much as $2.5 trillion worth of the fancy mortgages called "hybrids" are coming to the end of the free-lunch part of the deal. Economists are still trying to put numbers on this reset factor, particularly when it comes to the riskiest home loans, referred to as "sub-prime." "We don't have enough data to know how big a problem this will be," said David Berson, chief economist at Fannie Mae, the nation's largest mortgage packager....
Published on Monday 6th of September 2010 06:11:40 PM
Designing the world's worst mortgage
Posted by admin / Under Adjustable Gastric Band
I have tried to devise the absolute worst mortgage loan that I can imagine. Fortunately, this loan is nothing more than a figment of my imagination -- at least, as far as I know. But take a cynical guy like me with a looming deadline and this is what you get. This fictional loan would contain many of the elements that appeal to borrowers hemmed in by affordability. Like today's option, adjustable-rate mortgages, borrowers would be able to choose an interest-only payment or even a minimum-payment option. While the borrower is lured by the minimum payment, what results is a...
Published on Monday 6th of September 2010 06:11:40 PM
"Hope is the only bee that makes honey without flowers."
This Day In History
William McKinley: US president was shot by an anarchist; he died eight days later (1901)
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