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Originally Posted by wordsmythe  ..The only real choice is for the baks to get with the borrowers and work something out that keeps them in the home and paying for it. |
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Originally Posted by Outofdodge ...If the way to prop those investments back up is to get some high interest ARM's reworked, then so be it. The investors still loose because they aren't the getting the same returns they intended and the mortgagee's still have to pay but the rest of us don't suffer as much.... |
The two of you are on track here. Not often the three of us agree on something.
In most cases the lenders need to step up and bite the bullet on this. Most will if folks approach their lender before getting behind in the payments. Too many folks think that the lender will be a hard case and don’t even try. This is an education problem on the part of the homeowner. A little arm twisting on the lenders might be in order.
But we need to accept the fact that some folks are going to fall through the cracks and some flat deserve to. Show me a guy who’s working two jobs because his kid had cancer and medical bills exceeded the cap on his insurance and I’d say we should try and help out. Show me a guy with a new SUV and $500 car payments that took a second mortgage for an expensive vacation without thinking about the approaching increase in the ARM he has for the first and I’ll kick him to the curb.