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Thread: Ok, now I've heard everything: "Exploding ARMs"

  1. 02-07-2008, 04:09 PM #1
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    Silverbird
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    Default Ok, now I've heard everything: "Exploding ARMs"

    Ouch, when one of these go off!
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    Exploding ARMs Roil Bernanke's Drive to Calm Markets (Update1)

    By Bob Ivry and Jody Shenn

    Feb. 7 (Bloomberg)
    The estimated 1 million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Chairman Ben S. Bernanke. While subprime borrowers face an average increase of 8 percent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.

    ``We call them neutron loans because they're like a neutron bomb,'' said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. ``Three years later the house is still there and the people are gone.'' http://www.bloomberg.com/apps/news?p...BE8&refer=home
    "All the prophets of Doom, Can always find room, In a world full of worry and fear..." - Protest Song, Monty Python
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  2. 02-09-2008, 02:23 PM #2
    Texarkandy
    Texarkandy is offline TSP Starter
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    Default Re: Ok, now I've heard everything: "Exploding ARMs"

    “Joe Ripplinger took out a $184,000 mortgage in 2006…………

    “……It allows him to write a check for $565 a month even though he owes $1,300…….”

    Wow, What a deal!! Cheaper than rent! And I bet that $565 includes both PI and TI !!



    “……We're barely making it right now,'' Ripplinger said……”

    “….We thought they were putting us on a 30-year fixed….”



    Sounds to me like whoever loaned this guy $184K deserves to take a bath on the default - not get a bailout

    Well, at least the feds are going to send him $1200+ this summer for a new plasma TV (or perhaps he should use .99 cents of it to BUY A CALCULATOR DUDE!!)
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