I read this story yesterday and wanted to start a thread on it. The only reason that Mr. Perry could refinance with an ARM, instead of being forced into foreclosure, is because home prices are still rising in his market. So he had the equity to qualify for a new loan.
In San Diego, with home prices falling, I would guess that all 2005 and most 2004 buyers cannot refinance because they lack the equity. Also, rates are so much higher today, that you need the higher income to qualify for the higher rate. I guess Mr. Perry’s current income is high enough, or did he go stated?
I really wish we had a mortgage officer in our forums. We need it badly.
