Most articles dealing with the mortgage problem deal with things on a “textbook” level, meaning they examine the theory behind what happened and what the likely outcome is. In this piece in the Washington Post, they look through the eyes of investors, examining how they got into the mess, and what is likely to happen from that perspective. This is a good piece and puts a face on what has, up to this point, been a nameless problem. To read the whole story, click here. Be sure to read down. It gets more interesting as you go.
Having been in the mortgage industry for seven years now, I have not once sold an Option ARM - for the various reasons stated in the article. This is a program for a very select few that are finacially savy and disciplined.
Unfortunately, many mortgage brokers put their interests first and do not provide sound advice in what is agruable the largest financial transaction a potential borrower has incurred to date.
I strongly suggest that the industry institute some certification or licensing for every Loan Originator nationwide. It’s time to weed out the riff-raff and let the true professionals help those looking to realize the “American Dream” of home ownership.
I am a single mom of seven. I was awarded the house we live in through my divorce. But at the time my husband did not work because he was a meth addict. The courts said I had only two yeard to refinance or the house would go back to him because the loan was in his name. I can’t refinance. What can I do? My house is worth $200,000. I owe 135,000.