I really think it’s 95%(or more) of the borrowers that are screwed.
I thought I’d be optimistic and say 20% of the people could be helped, if they had an option ARM or stated loan.
So many of the borrowers in the option ARM could barely afford the minimum payment. The qualifying ratios that were used were moronic. I believe when Countrywide finally changed their qualifying method for the option ARM, they said 9 out of 10 people currently in the option ARM wouldn’t qualify for a new option ARM with the new guidelines.
The option ARM has special powers. It’s guaranteed to make the home owner a home renter in 3 to 4 years.
