Another Car Question

[eightyeightfan1]

I think the biggest problem was that the clowns we bailed out in the financial sector sold people on the adjustable rate arms based entirely on the concept that property values always go up. A lot of people who had those loans that reset the interest and in effect refinance the loan every 5 years suddenly had debt of twice what the house was worth. Credit rating or ability to pay had nothing to do with the foreclosure of many of those homes. The banks that had sold the people on a "bill of goods" five or six years ago, suddenly changed their tune when the property values fell. My son in law got one of those loans for the low payments, fortunately he was smart enough to realize that the property values might drop so he made extra payments against the principle from the beginning and thereby reduce the amount that needed to be refinanced so that his house is still worth what he owes on it or close enough that the bank will refinance.

I know two people that happened too.
They all had ARM's at low rates. Then the banks went up on the rate. (One person's mortgage went from $700 a month up to $1900 a month) Well, these two folks tried working with the banks for a lower rate, but the banks said no way. After months of TRYING to work with the banks, and kept getting denied, they finally gave up. One person, a very good friend of mine, was just finishing up moving out of his house when the bank called(right around the time the crap hit the fan), and decided to work with him. He told them to "Shove it" and hung up. The other person, got a letter in the mail at her apartment(maybe a month after moving out of the house), telling her that "The bank has reviewed its procedures and decided that it was advantagous for both parties to come to a reasonable agreement."(she showed me the letter) And will be willing to work out an agreement at lower then "PROPOSED" ARM. (Proposed?...Now it was just a proprosal? and wasn't cast in stone?)
Too late......
My friend told me that the bank still has the house, and the other person told me the bank she got her mortgage at went belly up