Out at the peak

Wednesday, March 22, 2006

ABC News starting to report the aftermath

The housing bubble popped late last year and if you are reading this, it is not news to you. What is interesting is that the mainstream media is finally getting some stories out. They are more of historians than anything.

Thanks to bpl_200_mbps from a Housing Panic comment for this ARM victim video. We are not trying to ridicule people, but more so educate others so they don't make avoidable mistakes.

4 Comments:

  • Excellent video! I'm sure we'll be seeing more of the same in the future.

    By Blogger contrarian2day, at 8:45 PM  

  • I don't want to make fun either, but what in the blazes were these people thinking??? They act like, "whoa, what a surprise we had here!" Did they not understand what an ARM was???

    I guess not.

    By Blogger Catherine Wilkinson, at 12:01 PM  

  • What it comes down to is people might presume that a 1% rate change will only affect the payment slightly. I don't think the loan officer walks through all the scenarios with the borrower.

    The reality is each 1% change is a drastic payment alteration. The AFB blog owner was a loan officer and he described many scenarios.

    By Blogger Out at the peak, at 1:40 PM  

  • I watched the video. The lady did not look like a rocket scientist. And this is the problem.

    The type of decision like which financing do I chose for my house is not one that is taught or discussed in school. Either you have a feel for math and compounding interest or you don't. With all of the advertisements like "Borrow 200k for 800/mo" are really taking in the suckers. If you don't have a math savy spouse, or an accountant in the family, you could easily fall for chosing an ARM when interest rates were at 40 year lows.

    In this regard, the banking industry really hasn't done itself any favors. We are going to have a generation who will be very distrustful of any loan officer when all is said and done.

    By Blogger twib, at 2:01 PM  

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