Chef Jim Posted April 4, 2006 Posted April 4, 2006 With the Fed continuing to raise rates to keep inflation in check they're screwing people like this and the millions more with adjustable mortgages. All to keep inflation from going above 2.5% per year. Anybody have a business plan to make money off the looming foreclosures? I would like to take a look at it. This Ought to be Fun
BB27 Posted April 4, 2006 Posted April 4, 2006 This Ought to be Fun 651792[/snapback] No, it ought to be in "Off the Wall."
Dennis in NC Posted April 4, 2006 Posted April 4, 2006 Fasten your seat belt, Jim. There is plenty more bad stuff down the road...
Chef Jim Posted April 4, 2006 Author Posted April 4, 2006 No, it ought to be in "Off the Wall." 651799[/snapback] Sorry...please move. How the hell did I get on the football board anyway.
BB27 Posted April 4, 2006 Posted April 4, 2006 Sorry...please move. How the hell did I get on the football board anyway. 651804[/snapback] Ahh, its allright. Actually, this is more interesting than most of the stuff here anyways. I thought for sure the link was going to have something to do with the latest Bills moving to LA rumor, or Moulds signing with NO. Or maybe even that damn screaming exorcist thing.
stuckincincy Posted April 4, 2006 Posted April 4, 2006 Sorry...please move. How the hell did I get on the football board anyway. 651804[/snapback] Use the Moderation Option available when you edit. Delete the topic and repost the topic elseware. Simple, eh?
ndmanley Posted April 4, 2006 Posted April 4, 2006 With the Fed continuing to raise rates to keep inflation in check they're screwing people like this and the millions more with adjustable mortgages. All to keep inflation from going above 2.5% per year. Anybody have a business plan to make money off the looming foreclosures? I would like to take a look at it. This Ought to be Fun 651792[/snapback] Come on! Adjustable rate mortgages go up when interest rates go up. That is the risk you assume for an ARM. That is why you save about 200bps on the interest. Overall, rates are still very low. Also, inflation is the enemy of the economy. If left unchecked, it will create an environment where those same people will have to pay more for everything. Also, there is a real risk that they will lose their job if the economy goes in the tank.
VABills Posted April 4, 2006 Posted April 4, 2006 It maybe an issue, but again the whole story isn't being divulged or it is glossed over here. First off, most ARM's do not go up 3% in a year, usually it is capped at 2%. Second, they got a short arm very a very high rate to start (7.5%). That meant they were already subprime. Finally and not to pick on old folks but these 2 are well into there 70's and the husband approaching 80. Why are they refinancing at this point in their life. These folks have probably had poor money management their whole lives and this is another case of unfair and poor reporting.
Agua Posted April 4, 2006 Posted April 4, 2006 Come on! Adjustable rate mortgages go up when interest rates go up. That is the risk you assume for an ARM. That is why you save about 200bps on the interest. Overall, rates are still very low. Also, inflation is the enemy of the economy. If left unchecked, it will create an environment where those same people will have to pay more for everything. Also, there is a real risk that they will lose their job if the economy goes in the tank. 651815[/snapback] Ditto.
BEAST MODE BABY! Posted April 4, 2006 Posted April 4, 2006 With the Fed continuing to raise rates to keep inflation in check they're screwing people like this and the millions more with adjustable mortgages. All to keep inflation from going above 2.5% per year. Anybody have a business plan to make money off the looming foreclosures? I would like to take a look at it. This Ought to be Fun 651792[/snapback] Yeah, teach yourself how to do short sales.
FTW_BillsFan Posted April 4, 2006 Posted April 4, 2006 That's the name of the game. You are betting that rates will stay the same or go down. You better be prepared if they go up. If not, who's fault is that?
The Poojer Posted April 4, 2006 Posted April 4, 2006 I blame Carter and Clinton! Fasten your seat belt, Jim. There is plenty more bad stuff down the road... 651800[/snapback]
Chef Jim Posted April 4, 2006 Author Posted April 4, 2006 Yeah, teach yourself how to do short sales. 651884[/snapback] It's not me I'm worried about.
Chef Jim Posted April 4, 2006 Author Posted April 4, 2006 It maybe an issue, but again the whole story isn't being divulged or it is glossed over here. First off, most ARM's do not go up 3% in a year, usually it is capped at 2%. Second, they got a short arm very a very high rate to start (7.5%). That meant they were already subprime. Finally and not to pick on old folks but these 2 are well into there 70's and the husband approaching 80. Why are they refinancing at this point in their life. These folks have probably had poor money management their whole lives and this is another case of unfair and poor reporting. 651826[/snapback] That story is just one example. There are tons of people that have adjustables, interest only and my favorite neg am and got them just so they can afford the "American Dream". For many of them that 2% rise in the rate will kill them. Oh and by the way you said the couple in this article have poor money management......well I think you've just described about 75% of the population. And don't think I'm turning into a bleeding heart liberal....I trying to figure a way to make money off these people.
Chef Jim Posted April 4, 2006 Author Posted April 4, 2006 Note to self: Never post anything by accident on TSW. Idiots live there.
ExiledInIllinois Posted April 5, 2006 Posted April 5, 2006 Come on! Adjustable rate mortgages go up when interest rates go up. That is the risk you assume for an ARM. That is why you save about 200bps on the interest. Overall, rates are still very low. Also, inflation is the enemy of the economy. If left unchecked, it will create an environment where those same people will have to pay more for everything. Also, there is a real risk that they will lose their job if the economy goes in the tank. 651815[/snapback] Shhhh! We are supposed to protect them as a "most favored group." God for bid they get in a bind because THEY ACCEPTED a risk. Next up: I lost big money in the stock market... So watch me whine thread. Chef is a financial advisor... Just as I expected to take flak on the ports ideas I have... The so called "accountable" conservatives seek special priviledge... I am gonna tell it like it is... Everybody isn't that much different... People will always defend their "meal ticket"... The gig is up on this one Chef... Move on...
ExiledInIllinois Posted April 5, 2006 Posted April 5, 2006 Note to self: Never post anything by accident on TSW. Idiots live there. 652149[/snapback] Hey... I take umbrage to that... I live everywhere.
ExiledInIllinois Posted April 5, 2006 Posted April 5, 2006 That story is just one example. There are tons of people that have adjustables, interest only and my favorite neg am and got them just so they can afford the "American Dream". For many of them that 2% rise in the rate will kill them. Oh and by the way you said the couple in this article have poor money management......well I think you've just described about 75% of the population. And don't think I'm turning into a bleeding heart liberal....I trying to figure a way to make money off these people. 652147[/snapback] I don't have an adjustable and I am living the "American Dream"... My wife and I are working stiffs making chump change, got two kids, pay taxes and send our kids to a Catholic school, live in a new house we bought 10 years ago, the house is under 2,000 square feet in a "republican collar county"... Drive a 8 year old car and a 12 year old car... And have absolutely NO family that is within 550 miles... We still manage to save 20% of our real income into my TSP AND my wife's pension plan. What seems to be their prob?... Tell them to "downgrade" their lives... You know what also... We still managed to pay only 8% in income taxes... You do the math... It means making sacrifices, it means having some self-esteem... It means knowing what is important in one's life...
Chef Jim Posted April 5, 2006 Author Posted April 5, 2006 I don't have an adjustable and I am living the "American Dream"... My wife and I are working stiffs making chump change, got two kids, pay taxes and send our kids to a Catholic school, live in a new house we bought 10 years ago, the house is under 2,000 square feet in a "republican collar county"... Drive a 8 year old car and a 12 year old car... And have absolutely NO family that is within 550 miles... We still manage to save 20% of our real income into my TSP AND my wife's pension plan. What seems to be their prob?... Tell them to "downgrade" their lives... You know what also... We still managed to pay only 8% in income taxes... You do the math... It means making sacrifices, it means having some self-esteem... It means knowing what is important in one's life... 652499[/snapback] And this has what to do with the fact that a large portion of US homeowners are leveraged to the hilt and every increase of interest rates pushes them closer to disaster. Yeah I'm a financial planner, that means I'm closer to the problem than most anyone here is because I see people's personal spreadsheet every day. Did I say I condoned this practice of going neg am to get the big house? No just the opposite. The arcticle I linked to was to point out a major problem looming on the horizon. Because you're not in that situation you don't seem to care. "Hey that's their problem." Sounds a lot like the game you blame the conservatives of playing. I said I was looking at a way to make money off the situation...sure why not, but for those I can help head off the coming challenge I will. And oh by the way, I get paid for that too. You're liberal hypocracy is showing......again.
ExiledInIllinois Posted April 5, 2006 Posted April 5, 2006 And this has what to do with the fact that a large portion of US homeowners are leveraged to the hilt and every increase of interest rates pushes them closer to disaster. Yeah I'm a financial planner, that means I'm closer to the problem than most anyone here is because I see people's personal spreadsheet every day. Did I say I condoned this practice of going neg am to get the big house? No just the opposite. The arcticle I linked to was to point out a major problem looming on the horizon. Because you're not in that situation you don't seem to care. "Hey that's their problem." Sounds a lot like the game you blame the conservatives of playing. I said I was looking at a way to make money off the situation...sure why not, but for those I can help head off the coming challenge I will. And oh by the way, I get paid for that too. You're liberal hypocracy is showing......again. 652530[/snapback] I do care... But, you can't make this group a "special product"... They (and I, even not affected) knew the rules. The thing is to move to a smaller house, hunker down and conserve... They do have the jobs and resources... They need to restructure and right the ship... It is gonna take some downsizing. And who says you gotta make money on your house... The bubble has got to burst and some will get sh*t on their face. But again, they HAVE the resources, they have the JOBS... These people, IMO do not have to be protected... They aren't helpless... Are they thankful for what they have to begin with?
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