Originally Posted by kane

I have to wonder how many of 91,000 bought the house knowing that they wouldn't be able to afford the payments once their ARM changed and went up or how many of them didn't even bother to ask how much the payments could go up?

It seems like the idiots and the greedy banks and brokers have screwed a lot of people over. Many people bought these house assuming that they would wait 3-4 years, let the value go up and either sell or refinance before the rate change. It didn't occur to them that a ton of other people were doing the same and the market would be saturated. Now they want to refinance but because so many people bought a house they can now no longer afford the value of their house as actually either dropped or stagnated and they can't get it refinanced. The lenders knew the odds of these people defaulting were high, but they didn't care, they sold them the house, then sold another company the mortgage before it all hit the fan.

I'm typically all for capitalism and letting the market set itself, but when it comes to things that could effect everyone else that is doing things the right way, I think there needs to be more regulation. There should be stronger rules when it comes to buying a house and I wouldn't feel bad if ARMs were completely done away with.