Comments on: Next Up: Massive Option ARM Defaults http://donklephant.com/2009/01/30/next-up-massive-option-arm-defaults/ Big Teeth. Huge Ass. Surprisingly Reasonable. Tue, 14 Feb 2012 14:03:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: DW http://donklephant.com/2009/01/30/next-up-massive-option-arm-defaults/comment-page-1/#comment-613890 DW Wed, 10 Feb 2010 23:16:25 +0000 http://donklephant.com/?p=13076#comment-613890 This really is a BIG problem--considering the state of our economy. However, I do feel that the blame rests on the shoulders of two groups: the issuers and the homeowners. I mean, to take advantage of homeowners in that way is inexcusable, but it is also true that many of the homeowners should make sure to take on a mortgage that is specific to their situation and financial status. There are some people who are defaulting, since they attempted to "overdo it" and enter into this type of agreement because it was available. Yet, did they take into account whether or not they actually should? Also, shame on the mortgage professionals that have taken advantage of people who would typically not have qualified for such a mortgage. I feel like there are lots of people laying the blame, but it should be distributed fairly, amongst the appropriate individuals, since SOME people can actually benefit from these option ARMs--those of us that are financially savvy and decided (correctly) to go with the option ARM. I honestly feel like you raised a good point in this article, and also feel that these two articles have contributed to my knowledge regarding this topic: http://www.bankapedia.com/mortgage-encyclopedia/faqs/534-how-does-an-option-arm-work- http://www.bankapedia.com/mortgage-encyclopedia/faqs/674-advantages-to-the-option-arm This really is a BIG problem–considering the state of our economy. However, I do feel that the blame rests on the shoulders of two groups: the issuers and the homeowners. I mean, to take advantage of homeowners in that way is inexcusable, but it is also true that many of the homeowners should make sure to take on a mortgage that is specific to their situation and financial status. There are some people who are defaulting, since they attempted to “overdo it” and enter into this type of agreement because it was available. Yet, did they take into account whether or not they actually should? Also, shame on the mortgage professionals that have taken advantage of people who would typically not have qualified for such a mortgage.

I feel like there are lots of people laying the blame, but it should be distributed fairly, amongst the appropriate individuals, since SOME people can actually benefit from these option ARMs–those of us that are financially savvy and decided (correctly) to go with the option ARM.

I honestly feel like you raised a good point in this article, and also feel that these two articles have contributed to my knowledge regarding this topic:

http://www.bankapedia.com/mortgage-encyclopedia/faqs/534-how-does-an-option-arm-work-

http://www.bankapedia.com/mortgage-encyclopedia/faqs/674-advantages-to-the-option-arm

]]>