71% not paying full interest

[jpinpb]

LV – You are right. I apologize. It would more appropriately be called speculator/fraud crisis BS. I know 2 people a few years back, one in LJ and one in LC that did options route. More acquaintance now. Don’t know how they’re faring. They both had high FICO scores. I would not call them victims or naieve.

[Navydoc]

“These are not subprime”

Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

[Navydoc]

“These are not subprime”

Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

[Navydoc]

“These are not subprime”

Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

[Navydoc]

“These are not subprime”

Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

[Navydoc]

“These are not subprime”

Nope, they sure weren’t. They were, however, affordability tools to people who had no prayer of affording the house they bought. The “option” they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

[patientlywaiting]

Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.

But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?

Those with patience will be amply rewarded.

[patientlywaiting]

Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.

But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?

Those with patience will be amply rewarded.

[patientlywaiting]

Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.

But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?

Those with patience will be amply rewarded.

[patientlywaiting]

Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.

But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?

Those with patience will be amply rewarded.

[patientlywaiting]

Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.

But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?

Those with patience will be amply rewarded.

[Coronita]

These are not subprime"

Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

 
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.

Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

These are not subprime"

Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

 
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.

Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

These are not subprime"

Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

 
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.

Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

These are not subprime"

Nope, they sure weren't. They were, however, affordability tools to people who had no prayer of affording the house they bought. The "option" they wanted was to live in a larger house.

It is mind boggling to me that 71% of option-ARM borrowers are negatively amortizing their loans in the face of declining home values. There is only one way for that to end, and I suspect it will come when they hit their loan-to-value caps.

 
This isn't a surprise. When I attended a financial "investment" group that consisted of members with non-financial background (technicians,etc) at a "investment seminar" group in Clairemont, with the exception of my wife and I, every person who purchased a home touted Countrywide's loan as being the "most flexible". Some said quote: "if I run out of money this month, I just use the loan's "flexibility" and make a minimum payment on it. I've done this for a couple of months already.

Ironic, some were trying to get me to refinance out of 30year fixed into an option arm loan.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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