Who is getting all the money out of these outrageous adjusted rate mortgages?
Also, who is responsible for getting people to sign into this mess? Seems like everyone is losing their homes because all of the sudden the interest went up on their loans.
Who is responsible and who is getting all that money?
You would be getting all the money if you were in the right position.
The people who signed up for these loans knew the interest was to rise after 3 years. In the mean time the home value declined… So the people who could not sell their home for profit are the ones who refuse to make the inflated payments. I said refused — not lost their jobs and are now homeless. By the time they are foreclosed on they would be occupying the home for 10-12 months and have not made one payment. and saved the money.. You do not understand these people have bought $100 thousand homes. They are not poor… I have no pity for the rich…
Nobody is getting all of the money. Mortgage brokers took off with all the loot a couple of years ago. Banks are losing and so are homeowners. Its the homeowners faults they are losing their homes, nobody forced them to take out loans on their homes and buy new cars.
The lenders who lent the money on the mortgage are the ones making money; whether it’s an adjustable mortgage or not. The interest charged is “profit” but only if there’s never a loss.
The borrowers who signed the loan documents are responsible for the situation they’re currently in. I saw so many home buyers that wanted what they want, and didn’t care how they got it. I probably lost a lot of loans because I was honest and up-front and tried to educate borrowers to not over-extend themselves when purchasing a home. NOW….2 or 3 years down the line when their ARM’s are adjusting they want to place the blame elsewhere….towards the lender, which isn’t right. We all know you have to sign dozens of papers at closing, disclosing all of this information. If you’re serious enough to buy a home you should be responsible enough to understand what you’re signing into.
Unfortunetly, I do think many homeowners didn’t anticipate that the market would go down the way it did. Because values have decreased a lot and stricter lenders guidelines many of these homeowners cannot refinance their current ARM’s into a fixed rate mortgage, which is unfortunate.
Enough about mortgage lenders – how much are these credit card companies making?!?!?
Responsible? The people who applied for and accepted the loan knowing that in 3-5 years they would have to pay 2-3 times more per month when their ARM’s (Adjustable Rate Mortgages) went up in interest are responsible. Yeah, Yeah, Yeah, lenders got really pushy and really shifty, but the bottom line is that if you signed the contract then you are responsible for fulfilling the terms of the contract.
As for the money, IF the loans were actually being paid, then the lenders or the banks underwriting the loans would be raking in the dough. Unfortunately, since the VAST majority of these loans are in default and foreclosure, then the lenders are losing money and going bankrupt.
Combined with the foreclosure rate is the fact that the owners cannot sell the property to pay off the loan because housing pricing are plummeting because of the vast numbers of houses flooding the market. It’s a viscous cycle…
It’s Supply and Demand, Basic Economics 101. Flood the market with supply, while demand stays stagnant or even better declines, and the price plummets.