I hope the Government does not bail anyone out on this. Interest only mortgages and sub prime adjustable loans are crap. People should have to pay the piper for living beyond their means. Just because you can does not mean you should. Those who live intelligently should be rewarded in times like these with bargain prices and opportunities.
Wow! Pretty broad paintbrush you are using there. There are MANY people in trouble, with adjustable rate mortgages, because they can't control there spending (or saving). Adjustable rate mortgages allowed MANY people to get into there first homes, with affordable payments. Many of those people are just fine right now. They have refinanced into fixed term loans, just like they planned. But, a lot of the people in trouble, got into the house, then proceeded to rack up credit cards bills, right along with their mortgage. Now, when rates adjust, and they want to refinance, they simply do not ratio, or they need to eat up whatever equity they do have, to pay credit card bills.
Saying, "Interest only mortgages and sub prime adjustable loans are crap" is ignorant at best. I have done VERY WELL using BOTH kinds of loans. They may not work for you, and they may not have worked for a lot of people in trouble, but they HAVE worked for a lot of people. Maybe some of the people in trouble now, should have never bought a home in the first place. Maybe they lack the financial discipline for anything more than paying rent and high interest credit cards. The world needs renters too. I need them to fill some of these places I got on subprime loans......
RF
:grin:
