Should the government freeze ARM payments for those that can not pay?

Question

Is this the Government's job? Will it help or just make it last longer? Is it really needed? Other than keeping people who can not afford thier house in there longer how does it help the responsible people.

Will the Government ever reward people that don't mess up or do the right thing?

http://money.cnn.com/2007/11/30/real_estate/ARM_rate_freeze/index.htm?postversion=2007113016

Answer 1

Of course not -- however, to prevent foreclosure (if that's what the mortgagee wants) the homeowner should contact the mortgage holder and work out a deal.

A payment plan can be negotiated for most situations -- and the rare cases where it cannot -- too f'ing bad.

It's a free country to enter into contracts -- to whine afterwards is the typical liberal philosophy -- become a victim and have someone else bail you out. pfft.

Answer 2

No! This program to bail out the irresponsible will cause more damage in the long run. It's an attempt to stop the tsunami of foreclosures from cresting in an election year, and we'll all pay the price down the line. And all the borrowers who were responsible enough to pass up the low, low "teaser" rates and lock in with a 30 year fixed are now going to get hosed, paying 2 or more points higher for their mortgages than their irresponsible neighbors.

Answer 3

Your last sentence says it all and the answer is "NO". The government of any socialized country rewards irresponsibility and failure while punishing production and success.

Personally I am sick of the whole thing. Be irresponsible and those who weren't will take of your health care, your groceries, your mortgage and the list goes on and on.

The idiots who run this country can not get it through their thick skulls that what they do to get votes is killing this country.

My friend was whining the other day. He bought at 400K, reverse amortization, now owes 420K on a house that is worth about 350K. He bought at the highest peak and was foreclosed while the market is on a downhill slide. He is literally upside down and will be paying for that house for years after the bank takes it back. I told him I had warned him but he refused to listen so tough SHlT. But he will be fine, he is a democrat, a socialist and a victim.

You will have to excuse me, I have to get back to work so I can pay for his house. What a suck ash situation and both parties are chasing those votes like they were hounds in heat.

BTW, who is the Libertarian candidate? He, She or It couldn't be any worse than the two parties we have now.

Answer 4

What is amazing to me is that they think that these people have had a bad deal. Almost all ARM rates are 3 or 5 years fixed. This means that almost all of those ARM loans that are now increasing lived through the massive appreciation.

So...here is a true example.

A person bought a house for just over $200K They had a 3 year fixed rate. They saw appreciation of over $80K. Now their rates are increasing, and they are crying that they cannot afford their home. They were forced to sell their home and POCKET $80K and they are whining that they should have just rented. WHAT KIND OF LUNACY IS TAKING OVER THIS COUNTRY?