Tuesday, December 23, 2008

Oops I did it again

For a while, I vowed not to read the housing bailout related news... mainly because it puts me on tilt. You know the story. Poor family can't afford the mortgage payment when their ARMs (that they chose to obtain) reprice and the interest rates are reset to levels they can't afford. Well, it was a slow afternoon and so, I caught this article on money.com.

My favorite part:
"After the monthly payment on his adjustable rate mortgage jumped to $2,400 from $1,300, he got a workout with the help of the National Community Reinvestment Coalition, a community advocacy group that offers mortgage-prevention counseling.
That workout may have pushed his payment down to $2,000, but it still represented more than 50% of the gross income he and his wife earn."

Awwwwwwwwwwwwwwwwwwwwwwwwwwww... poor thing, Maybe you shoulda thought about that when you first got the mortgage! Have fun on the streets, Mr Bagley.


lightning36 said...

Having always been a guy who watched his money carefully and made prudent decisions, I can't feel too sorry for these idiots who made such stupid, short-sighted decisions on mortgages.

People who lost jobs due to the economy and now have mortgage problems -- yes. But the others ...

When mortgage rates are low, you think that maybe some would have seen a 30-yr fixed as the way to go ... but then that might actually mean living within their means ...

OhCaptain said...

I have a really hard time feeling sorry too. People saw dollar signs. They saw property values growing and unsustainable rates. It didn't help that you had to beg to get a traditional mortgage not too long ago...but still. Before signing for something this huge, do a little diligence.