Ok. I am confused is this a Real Estate Blog or a Shakespeare blog....
"As concerns about subprime mortgages plague the nation's leaders and lenders, America's homeowners are confused and worried about their own mortgages, according to a recent poll commissioned by Bankrate.com."
From Bankrate.com Mortgage ignorance rampant
Could some of the subprime woes and mortgage industry changes and record foreclosures be the responsibility of the consumer too?
I was shocked to read in this article that when "asked what type of mortgage they had. A stunning 34 percent of the homeowners had no idea."
That means 1 of every 3 people in the United States did not pay attention to anything they were told in a 1 month process consisting of hours of conversation concluded with a potentially 50 page stack of papers they signed.
Even more perturbing is that another 1 of every 3 people in the United States do not know what they will do when their Adjustbale Rate Mortgage starts to Adjust. This is why the media has story after story of people suffering from payment shock. Those people surffering most likely either didn't know they had an ARM, or didn't know what to do once it adjusted.
I don't know about everyone else, but if I have a borrower going into an ARM I make a plan with them. I make sure they know they know what they are getting into, why they are doing it, what the plan is, and how to get out of it.
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