should rates of existing adjustable mortgages be frozen for a period of five years ?
to help prevent more for closers?
Tags: existing, five, frozen, Mortgages, Period, rates, Should, Yearsto help prevent more for closers?
Tags: existing, five, frozen, Mortgages, Period, rates, Should, Years
no. people who are in trouble shouldn’t have gotten into the market or leveraged what equity they did have. homeownership is not for everyone and now is the right time for a fallout.
Absolutely not. People aren’t losing their houses because interest rates are increasing. They are losing their houses because of their own poor judgment and lack of foresight. They borrowed more than they could really afford to – why should they get special treatment?
No, these people should be foreclosed and the lending instituion should be penalized too for loaning money to idiots that they knew couldn’t afford to pay off the loan.
wow, I’m suprised by the responses here. Usually most people blame appraisers, broker’s, arms’ themselves for this, but I do have to agree in some respect as I personally believe that borrower’s need to take more control of their finances, learn the value of a dollar and re-learn how to save. On the other hand though, not all of this is the borrower’s fault either. The lenders have a part in this tragedy as well, with they’re no doc loans and making executive level exceptions to borrowers over 90% LTV (this is a fact) but no one is blaming them at all. To me, while not everyone should be bailed out, if a borrower is upside down and had a no doc loan, why not put a freeze on the rate. This way, foreclosures could start to level off and hopefully so would property values. Also, banks would be stuck with honoring this rate, which is not a bad idea either. I think a bailout will occur, but who they limit it and who will receive it is a matter of great debate
No, they should not be frozen at the original interest rate. I would think that some reasonable limits on how high the interest rate can be raised might make sense, but those ARM loans were dirt cheap in their first few years. Lenders deserve a higher rate than the original ARM rate.