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To: TimF who wrote (120719)	12/28/2011 2:43:56 PM
From: MJ	of 156323

There are several major causes for the housing collapse----- not just crisis . . Adjustable Rate Mortgages for many--------unless one has a constantly increasing income, adjustable rate mortgages are nonsense . Adjustable Rate Mortgages were and are imo a ponzi scheme. Then enter the 'home equity loans' that took the equity of middle class homeowners---------the whole system is rotten to the core. Adjustable Rate Mortgages were and are still used to escalate monthly mortgage payments . As Insurance companies and taxes increase on houses. Congress should move to abolish adjustable rate mortgages------------if a buyer can't pay cash then the only answer should be fixed rate mortgages for x no. of years. mj

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To: MJ who wrote (120722)	12/28/2011 3:03:02 PM
From: d[-_-]b	1 Recommendation of 156323

ARM rates have gone from about 6% to 3% since mid 2000's - they are not the cause of anything. hsh.com Interest only style loans and others may be more at issue - especially as the underlying value of the home went down and forced people under water. Even more critical was any loan that offered 100% or more of the home price - this spelled disaster as home prices dropped as they do from time to time. Having a minimum down payment of 10% or more is the protection banks used to require before the government got involved in backing loans via Fannie and Freddie. Having some of you own money invested (like a stock) forces you to take the long view and wait for prices to recover - if you get the house for free with a 100% mortgage and it goes down in value you can walk away with the help of government money. Many people took that gamble and we all lost in the process.

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To: d[-_-]b who wrote (120723)	12/28/2011 3:54:07 PM
From: MJ	of 156323

Yes, ARM rates are lower at this time. That will be good for those who are getting in houses now in Northern Virginia at 5% down----------yes just 5% down and you don't have to be a citizen. Considering Obama's destruction of the economy and more wars I like some others believe we have not seen the end of this real estate collapse. The unfortunate part of the collapse is that the Federal Government will be the owner of a lot of the houses and land in the USA. If Obama remains in office legally or illegally, he will preside over the distribution of what the government controls.

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