Today I stumbled upon a troubling article from Karl Denninger. I had heard that the ARM *adjustable rate mortgage* mess was not over yet no matter how rosy a picture those on CNBC try to paint for us. The fact is; we are not out of the woods yet in relation to the mortgage meltdown we've been dealing with since 2007. The Alt-A, but more incredibly, the Option ARMs mortgage payments are going to be resetting (jacked-up) starting this year and if we think the Sub-prime was bad, we haven't seen anything yet.
Just think of it this way: Your mortgage payment you took on 5 years ago has been $900.00 a month UNTIL May 2010. Starting at that date your mortgage payment will now be $1900.00! It's been verified that on average the rise in these mortgage payments will reflect an eye-popping $1000.00 more a month!
Now I don't have a mortgage but that doesn't keep me from telling you what I would do if I did have one and was up against such a dower prospect. I would WALK AWAY! Yes folks, I would walk away and not fret about the situation nor look back. I would rent because that is all I suspect I would be able to do after having stopped paying my mortgage payments. Well, I would hope so at least. I hear of many sad stories of previous home owners walking away from their homes only to be turned away from renting due to poor credit that was directly attributed to the former.
How many can say they would be able to pay that large of an increase on their house payment? Not many I suspect, especially with so many in our nation out of work.
My heart goes out to all of my readers who have struggled to make ends meet. Many are those who have done without basic necessities in order to put food on the table and gas in the tank. Countless hours have been spent at the job you really don't like because you knew that it was the only way to keep your head above water and your family off of food stamps. Dealing with unappreciative employers, low wages, lack of insurance, and not enough vacation days. If this describes you, a prayer in my heart and a thank you on my lips goes out for you. You have sacrificed much and you love much and now you are facing the worst time of your life dealing with layoffs and possibly losing your home and even much, much more. In these times you cannot go wrong if you turn it all over to God and expect him to come to your rescue.
As for this recent continuation of the mortgage mess? What else can I say but this is just another spoke in the wheel of our recent economic nightmare that at one time was our American dream.