Countrywide Home Loans Sends out a Frightening Letter to ARM holders

**BoyAlley** · 08-18-2006, 01:40 PM

A LOT of people got in WAY over their heads, and it's only a matter of time.....

**SinisterStudios** · 08-18-2006, 01:53 PM

All i can say is Cha Ching, time to put the vulture hat on and swoop in and pickup some great bargins

**SiMpLe** · 08-18-2006, 01:58 PM

Originally posted by SinisterStudios

All i can say is Cha Ching, time to put the vulture hat on and swoop in and pickup some great bargins

Yup - I held off during the wave of sillyness just for this to happen

**JFK** · 08-18-2006, 02:04 PM

Originally posted by SiMpLe

Yup - I held off during the wave of sillyness just for this to happen

me too,waiting for the downturn

**Rochard** · 08-18-2006, 02:04 PM

One of my houses is financed through Countrywide and our payments have gone up dramatically.

**JimmiDean** · 08-18-2006, 02:08 PM

I was through this once when I worked in high tech and everyone leveraged the hell out of themselves.
With the historic low rates that where offered coupled with the fact that the banks lent out way to much to people it is coming again.

**JOHNNY_BUTTHOLES** · 08-18-2006, 02:09 PM

Originally posted by JFK

me too,waiting for the downturn

be careful. it could be a long, slow steady decline that takes years to work itself out like in Japan.

**BLish** · 08-18-2006, 02:16 PM

**aimeesweet** · 08-18-2006, 02:16 PM

Originally posted by Rochard

One of my houses is financed through Countrywide and our payments have gone up dramatically.

I'm so glad I just locked myself into a 30 year fix. Richard, you should talk to laurel she just helped John and I with our refi and got us into competitive loan.

**crockett** · 08-18-2006, 02:23 PM

I've never understood why anyone would take a adjustable rate mortgage. No way on Earth would I get anything but a fixed.

**JFK** · 08-18-2006, 02:43 PM

Originally posted by crockett

I've never understood why anyone would take a adjustable rate mortgage. No way on Earth would I get anything but a fixed.

Its good for a while, I had prime + just had it locked in a month ago

**Big Red Machine** · 08-18-2006, 02:45 PM

Originally posted by crockett

I've never understood why anyone would take a adjustable rate mortgage. No way on Earth would I get anything but a fixed.

Especially when they said rates hit a 40 yr low. Take any fixed you can get, obviously its going to go up. Its going to be ugly

but like Mr.Sinister said there will be opportunity

**RawAlex** · 08-18-2006, 04:06 PM

You know all those insanely over done houses they built in SoCal and around Texas... well... pop goes the mortgage and here comes foreclosure and low, low sales costs.

Then the real money making is made.

**crockett** · 08-19-2006, 08:25 AM

Originally posted by RawAlex

You know all those insanely over done houses they built in SoCal and around Texas... well... pop goes the mortgage and here comes foreclosure and low, low sales costs.

Then the real money making is made.

what do you mean by over done houses in Texas do you mean over built as in too many on the market? I'm looking at buying some out there as there are a ton of foreclosures and the prices are cheap.

**KRosh** · 08-19-2006, 09:13 AM

Originally posted by SiMpLe

Yup - I held off during the wave of sillyness just for this to happen

Originally posted by JFK

me too,waiting for the downturn

Why would you hold off? If you purchased 3 years ago, you could have locked a 30yr. fixed for 5.5% and the house has doubled in value!

And to answer the question why anyone would get an ARM - if you are buying property as an investment, you rent out your porperty for a couple of years, the value goes up and the rent sustains the mortgage and finally you sell!
(there are many more reasons and if you want to know ask me

)

Yes there are many that got in way over their head, but the prices are not going to drop as much as people think. The market will correct itself.

Yes there will be many foreclosures, but the prices are not going to drop by 50%. Had you purchased a home 3 years ago, you would still be sitting on a ton of equity.

Now the people that took out HELOC's and spent the money on new cars or other luxury items are screwed!

**illeana** · 08-19-2006, 09:30 AM

I agree rates will go up, and the market value in Cali (especially ) I can't say they will drop, but it they will level out... The real estate its self has gotten way out of hand.

**Peaches** · 08-19-2006, 10:32 AM

OTOH, my HELOC is ajustable and right now it's at 9.75% and my mortgage company offered to lock it in at 7.5%.

**GigoloMason** · 08-19-2006, 11:00 AM

There's lots of legitimate reasons for investors to use ARMs. Unfortunatly there's also a lot of newer home owners who abused them to finance over their head.

**woj** · 08-19-2006, 11:06 AM

Originally posted by SinisterStudios

All i can say is Cha Ching, time to put the vulture hat on and swoop in and pickup some great bargins

**Drake** · 08-19-2006, 11:08 AM

"Though estimates vary, some industry experts say that at least a half a trillion dollars worth of loans with reduced initial payment terms are scheduled to reset during the coming year. "

Uh-oh

**69pornlinks** · 08-19-2006, 11:52 AM

*pop* .....

**Manowar** · 08-19-2006, 11:54 AM

Originally posted by BLish

**Chris** · 08-19-2006, 12:01 PM

two fo my parents houses are thru them ;x and i am in the process of going thru them

should I jump ship?
no way i can afford double what they want me to pay already ;x;x;x

**illeana** · 08-19-2006, 12:35 PM

x and i am in the process of going thru them

should I jump ship?
no way i can afford double what they want me to pay already ;x;x;x

no just make sure that your Good Faith Estimate reads Fixed Rate if it doesn?t ask your loan officer to get you a fixed rate quote ... and if your fico is at least 660 you should still be able to get a good rate ?

**Damian_Maxcash** · 08-19-2006, 12:40 PM

Same shit is happening here - but actually probably worse.

Have a look for 'endowement mortage' on Google - its scary what happened.

Countrywide Home Loans Sends out a Frightening Letter to ARM holders

Countrywide Home Loans Sends out a Frightening Letter to ARM holders

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