Something that has confused me

[TankGirlz]

Back when our mortgage adjusted for the first time the feds had dropped interest rates to historically low levels. Now I know they aren't the same thing, but how do these banks get away with the constant increases in interest rates with the fed rate considered?

Why don't they get that they could have gotten the whole price of the loan if they didn't rate people out of them (and this was after the crash had started, I know why they USED to do it)

Anyone?

[Kimbly]

It's quite likely (I'm almost certain really) that your adjustable rate has absolutely nothing to do with the Fed rates. Most adjustable mortgages are a percentage plus Libor rates.

How do they get away with it? We all were foolish enough to agree to the contracts which outlined these increases, whether we understood them or not, and they were within their legal rights to right them as such. If all of us had researched and understood what these increases really meant, perhaps we wouldn't have signed them. If none of us had signed them, they wouldn't/couldn't have continued to use them. Of course, many of us couldn't have afforded to buy without the I/O adjustables. In many ways, that's the whole point isn't it? We used them to get into homes because we wanted the "american dream", they used them to make boatloads of money off of us - "capitalism" at it's finest. We all bought into the "you'll be making more money", "Housing will continue to increase", "You'll be able to refinance before the reset", ect.

There's enough culpability to go all around......

[TankGirlz]

You're right of course, we were gonna refi in 2 yrs.

I knew the fed rate and mortgage rates were different, I asked specifically when we signed "can the rate go down?" she said yes, or stay the same or go up... it's always up..

Should be a crime... ugh Michael Moore can't wait to see "Capitalism"

[Kimbly]

Deregulation at it's finest.

I'm going to see Capitalism this weekend I think. It's been interesting to watch some of the talk show people's responses to Michael Moore as he's been making the rounds.

Yea, it never goes down. Mine is structured with the language of Libor + %, and that percentage goes up every three years on top of the Libor changes.

Knowing what I know now, I would never have signed. Frankly, until I got to the closing table, I thought we were all set with the 30 year fixed. Then the big "oops, drew up the wrong papers", "you can not sign but then you'll lose out on the house", "the sellers will sell to someone else before we can get the papers redone", "don't worry, we'll refi you in three years".

If we had walked then, we wouldn't be walking now!! Hindsight is 20/20 of course. Frankly, it doesn't even matter at this point, for us, what kind of loan we're in. We're so far underwater, we won't see the surface for decades. I'm just a glorified renter now, commuting too far and paying WAY too much 'rent'. They can take this loan and shove it.... well you know where.

[TankGirlz]

I am going to try til the bitter end when the sheriff comes, to get my mod.

But will walk guilt free knowing I did everything right from contacting CW the moment we were in trouble.


This forum, saved my sanity..people like you all of us in it together