http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/ Learn, Network, Invest Sun, 23 Nov 2008 13:14:14 +0000 http://wordpress.org/?v=2.6.1 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-50966 Wayne Long Sun, 26 Aug 2007 23:46:43 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-50966 The biggest mistake people made was in thinking the increase in values would continue on a straight line. 100% mortgages are no problem as long as your home continues to increase in value but when it stops and you run into problems - it is hard to find a way out. The biggest mistake people made was in thinking the increase in values would continue on a straight line. 100% mortgages are no problem as long as your home continues to increase in value but when it stops and you run into problems - it is hard to find a way out.

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-49766 reader Sun, 22 Apr 2007 08:25:37 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-49766 LOL @ the guy saying equity is a zero return investment. If mortgage rates are 6% then your equity is making 6%. Think about it, the more equity you have the less money you have to hand over to the bank for interest. LOL @ the guy saying equity is a zero return investment. If mortgage rates are 6% then your equity is making 6%. Think about it, the more equity you have the less money you have to hand over to the bank for interest.

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-49697 Tesh Tue, 17 Apr 2007 18:34:07 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-49697 Hmm... regarding ARMs and such being tools, sure they are, for speculation. Speculation and "investing" is what has destroyed the housing market. Speculation has a history of distributing wealth; from the poor to the rich. So, no argument about them being tools... but they are most definitely not tools that benefit those who need it most. Hmm… regarding ARMs and such being tools, sure they are, for speculation. Speculation and “investing” is what has destroyed the housing market. Speculation has a history of distributing wealth; from the poor to the rich. So, no argument about them being tools… but they are most definitely not tools that benefit those who need it most.

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-24715 Mark Wed, 17 Jan 2007 02:00:51 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-24715 DO the math on these loan. If you look at when the majority of people started taking these mortgages starting in 2005. Then calculate the interest rates changing, and (not only negative amortizing at 3%, but now 5%) the 110% cap loans will start recasting late 2007/early 2008. With there loan balance growing, and many markets stagnating or dropping in prices, you will see many people go into forclosure, it will be a very big domino effect to the system. DO the math on these loan. If you look at when the majority of people started taking these mortgages starting in 2005. Then calculate the interest rates changing, and (not only negative amortizing at 3%, but now 5%) the 110% cap loans will start recasting late 2007/early 2008. With there loan balance growing, and many markets stagnating or dropping in prices, you will see many people go into forclosure, it will be a very big domino effect to the system.

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-15405 propertyhype.com » Refinance Before Making Late Mortgage Payments Sun, 10 Dec 2006 04:41:28 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-15405 [...] In the current housing bubble, hundreds of thousands of people, if not millions got themselves into risky mortgages. Often times people will not realize that they cannot afford their home until it is too late! If you’re having problems paying your mortgage and you want to refinance, do it before falling behind or making that late payment. [...] [...] In the current housing bubble, hundreds of thousands of people, if not millions got themselves into risky mortgages. Often times people will not realize that they cannot afford their home until it is too late! If you’re having problems paying your mortgage and you want to refinance, do it before falling behind or making that late payment. [...]

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-15136 Real Estate Investing For Real | A BiggerPockets Blog » Blog Archive » Refinance Before Making Late Mortgage Payments Fri, 08 Dec 2006 22:59:56 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-15136 [...] In the current housing bubble, hundreds of thousands of people, if not millions got themselves into risky mortgages. Often times people will not realize that they cannot afford their home until it is too late! If you’re having problems paying your mortgage and you want to refinance, do it before falling behind or making that late payment. [...] [...] In the current housing bubble, hundreds of thousands of people, if not millions got themselves into risky mortgages. Often times people will not realize that they cannot afford their home until it is too late! If you’re having problems paying your mortgage and you want to refinance, do it before falling behind or making that late payment. [...]

]]> http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-8120 Denise Wed, 18 Oct 2006 20:46:37 +0000 http://www.biggerpockets.com/renewsblog/2006/09/03/toxic-mortgages-the-map-of-misery-and-option-arm-hell/#comment-8120 These FHA loans and people with low income you talk about in order to get the option arm loan you have to have good credit and at least 10% to put down on a home. So for the poor this loan typically isn't even available... These FHA loans and people with low income you talk about in order to get the option arm loan you have to have good credit and at least 10% to put down on a home. So for the poor this loan typically isn’t even available…

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