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[passthedutchie]

This angers me. A lot of people may lose their homes because their adjustable rate mortgages are set to go up next year. Now the government wants a freeze on their rates

Comments

[crysodenkirk]

To be fair, I think a lot of people get into ARMs without knowing how they really work. If you're not so great at understanding the fine print and your broker/agent doesn't go the extra mile to make sure you understand... and that doesn't take into account the fact that brokers will make more money on servicing an ARM than a fixed, provided it doesn't go into foreclosure -- and they make money whether it goes into foreclosure or not if they've sold the loan outright. I think a lot of people are victims of a kind of legal fraud from brokers who are more interested in their bottom line than in what happens to the borrowers.

Which is not to say that there aren't also people just that stupid or irresponsible. But not everyone who's in trouble is irresponsible, just not very well educated fiscally.

[passthedutchie]

I'm just surprised at how people don't ask questions. There's so many things that seem obviously dangerous, like check cashing stores or rent-to-own appliance places that charge outrageous fees. I know a lot of people that took ARMs were poor to begin with. If you made very little money, wouldn't that make you question where the money goes even more?

I think the credit card companies are a bigger issue, and a lot has been in the news this week about it. Raising your interest because you took out another card is just crazy! McDonalds can't charge you more if you eat at Burger King! I'd rather see the government crack down on credit cards, because they effect almost everyone.

http://www.latimes.com/business/la-na-credit5dec05,0,6590360.story?coll=la-home-center