The Domino Effect with Mortgages

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Real Estate Agent with Beechwood Realty 01704225

As many lenders tighten up their guidelines to prevent people from not making their payments, I personally think that by them doing this, it is actually affecting the person that has an ARM that is ready to adjust but cannot refinance because so and so lender changed their guidelines.  Which means that borrower will have to either ride the wave or just wont be able to make the payment because it adjusted another $600.00 and be another foreclosure statistic.

I am seeing this everyday and it is just like the title says it is a domino effect.

What do fellow rainers think about whats going on with what I call the "The Domino Effect"?

                                             

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Rainer
76,217
Todd Murphy
Fitts Agency - Tuscaloosa, AL
I definitely think that there will be a lot more challenges to come for those who want to refinance.
Jul 03, 2007 11:22 AM #1
Rainer
81,518
Katie Evans
Keller Williams - Greenville, NC

My husband and I have an ARM on our personal residence.  We came into the house with a large amount of equity and plan of paying the remainder off.  I love to hear clients that say anyone that has an ARM is stupid!  Of course for the average consumer it is.

That said, I am getting offers daily from compaines to transfer to a fixed rate.  Obviouly with he both of us being in the business (my husband it a builder)  the 4.5% rate that we have for the next 8 years is bragging rights. 

That said, the local credit union has a two year ARM.  They have pushed those on first tmie homebuyers.  I begged many of my clients not to do it.  But when the loan officer says "I know my product better that an Realtor."  What do you say....Better believe that I have marked on my top producer to call them.  They need to list their house to get away from the mortgage!

Jul 03, 2007 11:36 AM #2
Rainmaker
248,159
David Kosmecki
Sierra Pacific Mortgage - Ramsey, MN

Many prior lending decisions and poor advice was given to many clients based our our world never changing. With my 27+ years in the industry, similar situations have happen in the past and will happen again. I've seen many 2 year loan officers giving advice they have no business giving as they have "no clue".

Dave Kosmecki - AmStar Mortgage

http://wwww.americanstar.com

 

Jul 03, 2007 11:37 AM #3
Rainmaker
560,797
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal
It will get very interesting.  There are a lot of those loans readjusting over the next year. 
Jul 03, 2007 12:42 PM #4
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Rainer
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Freddie Castaneda

San Jacinto Valley Real Estate
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