$700 B Bailout

[redsk1]

Originally Posted by firstdown

So in your last paragraph can we reason that people did not take the savings and pay down the principle thus making their principle much lower when it adjusted to the higher rate? Caould we also assume that these people did not pay down the principle and used the money for new cars etc... now tying up that money ment for their mortgage in other things?

Yeah, no doubt there's alot of instances like that. As lenders, we try to offer different options while at the same time educating the client on how each option works, and maybe even making a recommendation to what might fit them best. But it's not really the normal ARM that's causing all these issues it's 100% financing, Alt A, subprime, second mortgages, decreasing value, and then mortgage backed securities/Wall Street.

So, all I'm saying is you can't just say "lender's are bad and should go to jail."