Mortgage meltdown
Adjustable rate mortgages are due for a reset in October, which will send mortgages rising in some cases by hundreds of dollars. For homeowners already living on a tight budget, a mortgage increase could be disastrous and add to the growing foreclosure crisis.
Are you living with an adjustable rate mortgage for whom the American dream of home ownership has become a financial nightmare?
Are you living with an adjustable rate mortgage for whom the American dream of home ownership has become a financial nightmare?
posted by lbarr at
11:03 AM
9 Comments:
My husband and I were victims of preditory lending and an adjustable rate mortgage. We tried very hard to work with our mortgage company (Wells Fargo) but was unable to get anywhere with them and as a result we filed bankruptsy and lost our home after just 2 years.
We are not a young couple and this was suppose to be a retirement home for us but instead it has been 2 years of pure hell and we lost everything that we had worked for.
Please keep this topic in the news so things like this does not happen to other people and that as the mortgage industry changes that people are aware of all the products that are available to them and not just what the mortgage company wants you to know.
Our appraised property value was inflated by 20% and on top of an arm we were not able to refinance.
This is the readers digest version of this nightmare so please help other people.
My adjustable rate mortgage just jumped 2.5%; this is after having the mortgage for more than 3 years and never having a late payment, and always paying more than what was owed. I now have to pay almost $200 more a month in interest -- none of that is prinicpal. This sucks!
I WANTED THE AMERICAN DREAM OF OWNING A HOME-CREDIT WAS NOT GREAT-LENDER GOT ME IN FOR FOR SAME PRICE I WAS RENTING FOR-NOW MY PAYEMENT WILL JUMP FROM 560 TO 780... I AM ONE OF THOSE THAT DIDNT READ THE FINE PRINT-JUST EXCITED ABOUT BUYING A HOME-I JUST DONT KNOW WHAT I AM GOING TO DO...OTHER THEN GET A 2ND AND 3RD JOB
Let's face it folks. There is a HUGE paradigm shift happening in the USA right now. We are 'offshoring' and exporting once solid, well-paying, and secure U.S. jobs (especially in the manufacturing realm), with good benefits, to places like China, India, and Mexico. Over the decades, Capitalism USED to be a fair, well-balanced system that benefitted most, including the middle-class. This is not true anymore. Modern-day Global Capitalism (or Globalism, as it's often called) is killing and ruining us bigtime! Bankruptcies and foreclosures are at record highs, 50 million of us can't afford healthcare insurance anymore, job security is a thing of the past, and crook bankers keep raping us with too many fees and interest rates! Democracy is dying with whore lobbyists representing big corporations, and ignoring people's needs. Sadly, most of us remain inactive and apathetic, as we continue to be anesthetized by sports and other vices. Most of us Americans are sadly 'asleep at the wheel' and things will get worse. The question is, 'how much more are we willing to take'?
Not to sound cold, but how can we all feel bad for these people who didn't read their mortgage agreement before signing?! All the terms of the agreement are right there to read. How is it everyone else's problem because these people were ignorant???
I am in the same situation as a lot of people are with the adjustable rate mortgages. My rate of 8.675% is fixed until next October. I am in the process of trying to sell my home to get myself out of this mess before it is too late. I was told my payment would go up 1.5% every 3 months until it reaches 15.67% when my fixed rate expires. In reference to the comment Anonymous made, we are not ignorant people. We were told whatever we wanted to hear at the time. My broker told me that I would be able to refinance with no problem after 1 year of the loan being active. Well, I'm finding that is not true. There is a penalty for paying off your loan early which is usually a few thousand dollars on top of the closing costs and fees. Well, most of the people in our situation don't have $5,000 laying around to refinance the home and there usually isn't enough equity to roll the fees into the loan. I would also like to say to Anonymous that the only ignorant people here are the lenders. They may be making money off of us now, but I know it costs them a lot of money for legal fees to do a foreclosure. 9 times out of 10, the bank ends up buying the house back for a percentage of the loan and then they are stuck with the house. If you think about it, who is the ignorant one and who is really losing? The banks are just as guilty because they put themselves into these situations by trying to stick it to people like us but they are sticking it to themselves as well.
To the adjustable rate mortgage topic. I took a home loan out 3 yrs ago(Option One) and they did say your pmnt might chg in the future, depending on the intrest rates. Well if anybody noticed, rates have went down, which would take my pmnt. down. Not so, so the guy who commented "read your contract" most of us did, and still a 500. mo pmnt. went to 700. who's ignorant? It's deception and theft. He must be affilliated w/ a Mortgage Co. Deception is the case here, nobody was told or no contract states your payment is going up no matter what. It says may fluctuate with the intrest rates. Which was a lie/deception. Which is illegle, DUDE.
I cannot understand why anyone would take a 30 year mortgage with an adjustable interest rate? History has shown that interest rates have both skyrocketed and dropped dramatically over the last 30 years. Why take the risk? To get a slightly lower payment NOW? Only to risk a big increase later? You can't have your cake and eat it too. These are the same people who don't get on the budget plan with the gas company because they don't want to pay $100 for gas in the summer but then scream and yell all winter when their gas bill is $400 a month!! Be smart....Plan ahead!! Stick with a fixed rate....there are a lot of good options to refinance later if the rates drop drastically. Take responsibility for yourself...don't blame others for your mistakes. LEARN FROM THEM.
I wonder if anyone else was told they couldnt get a fixed rate? I was told due to my credit not being the best that I couldnt get a fixed rate and if I wanted to own a home, I needed to take the ARM for at least two years and then refinance and get a fixed rate loan. I was also told this would build up my credit and work great for me in the future and I would be in great shape as long as I made my payments on time. Guess what! As it turned out, each time my loan is sold, the payments arent reported for at least 60 days and my loan has been sold three times in two years. So! My credit rating is worse now than when I purchased, I own a house that I cant afford the payment on, and I cant sell it because the value was inflated and I cant get out of it what I owe on it. This should most definately be criminal! You know what they say about hindsight? If I ever get outa this mess, I'll never try to own again! This Sucks!!!
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