Friday, October 26, 2007

Country Wide Admits even Prime option-arms are Screwed.

How did people who took out these loans not understand how they work, and how did the lenders not realize the ramification's?

You mean people with bad credit who have long histories of not paying their bills or filing bankruptcy will continue to behave the same way once we put them in a half a million dollar house?!?!? No way!!!! Who could have possibly known?!?

Negative Amortization Option-arm:

If people can only afford 900 a month on a house payment, and you qualify them on an option arm where 900 is the absolute minimum payment that does not even cover the interest....Are you really trying to say that mean those people will have a mortgage balance that grows every month and will default once it resets to include principle? You must be kidding me, lol. We could have never known.

The stupidity of this whole situation really astounds me.

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