ARM Resets Delayed

[ax]

Good News: Option ARM Resets Delayed

"...Thousands of mortgage loans that were supposed to reset at a higher rate this spring won't be changing, putting off the grim threat of foreclosure or bankruptcy for many Americans by as much as a year. Unfortunately, the reprieve will only be a temporary one."

http://www.businessweek.com/lifestyl...s+%2B+analysis

[metalman]

Re: ARM Resets Delayed

Good News: Option ARM Resets Delayed

"...Thousands of mortgage loans that were supposed to reset at a higher rate this spring won't be changing, putting off the grim threat of foreclosure or bankruptcy for many Americans by as much as a year. Unfortunately, the reprieve will only be a temporary one."

http://www.businessweek.com/lifestyl...s+%2B+analysis

'The bad news: Low home prices and high unemployment could still punish borrowers when the reset happens sometime next year'

huh... just how much more fire econ disaster can be pushed off until after 2010 congressional elections, anyhow?

[GRG55]

Re: ARM Resets Delayed

'The bad news: Low home prices and high unemployment could still punish borrowers when the reset happens sometime next year'

huh... just how much more fire econ disaster can be pushed off until after 2010 congressional elections, anyhow?

Probably a lot more than we have the imagination to picture...

Let's see now...My house is worth a lot less than the mortgage I bought it with [it was worth less on Day 1, because I got 110% financing], I just lost my job, my wife just left me [and took the furniture], the dog growls every time I come in the yard, my car got repossessed, and I just found out that my neighbour has a bigger big screen TV than I do.

So my generous banker isn't going to raise my mortgage rates just yet? I am supposed to be so fzcking thankful that I should go down on my knees with my hands clasped? Where's the Bud?

[metalman]

Re: ARM Resets Delayed

Probably a lot more than we have the imagination to picture...

Let's see now...My house is worth a lot less than the mortgage I bought it with [it was worth less on Day 1, because I got 110% financing], I just lost my job, my wife just left me, my car got repossessed, and I just found out that my neighbour has a bigger big screen TV than I do.

So my generous banker isn't going to raise my mortgage rates just yet? I am supposed to be so fzcking thankful that I should go down on my knees with my hands clasped? Where's the Bud?

lest we forget, the 2001 recession was announced nov. 2001 after 3 quarters of contraction. the recession we're in now that started in dec. 2007 was not 'official' until a year into it, in dec. 2008... after the 2008 presidential elections.

[jandkmeyer]

Re: ARM Resets Delayed

Resets aren't really the big issue with Option ARMs. I can't say it better than Dr. Housing Bubble:

"Okay, without a doubt the LIBOR has fallen drastically over the past year. This is excellent news for those in more conventional adjustable rate mortgages. In the case of options ARMs, first, not all are indexed to the LIBOR but more importantly the margin rate is fixed. So assuming the 2.75% margin rate and the .47 1-month LIBOR the new blended rate is 3.22%. A good deal for readjustments but not for re-casts. And for the purposes of option ARMs, this does very little because keep in mind most people are making the minimum payment only and even if rates went down to zero (which they may) it doesn’t remove the margin or the fact that the monthly payment will be going up no matter what. Why? Because they are on a negative amortization schedule and even with a zero percent rate, the principal and interest will amortize causing the payment to go up.

http://www.doctorhousingbubble.com/o...-toxic-assets/

Roughly 70 percent are on the neg am schedule which means the principal is going up every month. I can't think of any reason to do that unless 1) you can't afford more or 2) you plan on defaulting when it recasts. I have a nephew out of a job in that position.

[ax]

Re: ARM Resets Delayed

Probably a lot more than we have the imagination to picture...

Let's see now...My house is worth a lot less than the mortgage I bought it with [it was worth less on Day 1, because I got 110% financing], I just lost my job, my wife just left me [and took the furniture], the dog growls every time I come in the yard, my car got repossessed, and I just found out that my neighbour has a bigger big screen TV than I do.

So my generous banker isn't going to raise my mortgage rates just yet? I am supposed to be so fzcking thankful that I should go down on my knees with my hands clasped? Where's the Bud?

Some of my neighbors, who are renting and live 2 or 3 families deep, have lawn chairs as their living room furniture to sit down in front of their big screens (definitely bigger than mine) and their x-boxes. How do I know this? They've never bothered to put up blinds or shades in any window in their house. I was hoping the resets would come sooner than later for the original flippers.

[GRG55]

Re: ARM Resets Delayed

lest we forget, the 2001 recession was announced nov. 2001 after 3 quarters of contraction. the recession we're in now that started in dec. 2007 was not 'official' until a year into it, in dec. 2008... after the 2008 presidential elections.

Can't hardly wait until Stimulus Package III [or is it IV?] is announced later this year, to goose the economy in Q2 & 3 next year, the runup to the midterms.

Never, ever underestimate the desire of a politician to be re-elected...:p

[Slimprofits]

Re: ARM Resets Delayed

lest we forget, the 2001 recession was announced nov. 2001 after 3 quarters of contraction. the recession we're in now that started in dec. 2007 was not 'official' until a year into it, in dec. 2008... after the 2008 presidential elections.

Elections in 2001?