Comments on: 5 Things to Do Right Now if Your ARM is Going to Reset Soon

By: MortgageWreckage

MortgageWreckage — Tue, 08 Jan 2008 18:47:35 +0000

I’m in this very situation and have been told, upon trying to refinance, that because I have a 100% financed loan and the house has depreciated in value, that I can’t refinance. Is there any recourse?

By: RIchard Geller

RIchard Geller — Sun, 25 Nov 2007 19:54:46 +0000

another awesome post. I just blogged about this post, thanks Morgan. I have a lot of readers who can’t get another loan for various reasons but your info is spot on.

–Richard

By: What to do if your ARM is resetting

What to do if your ARM is resetting — Sun, 25 Nov 2007 19:54:14 +0000

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Wed, 10 Oct 2007 01:25:40 +0000

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Wed, 10 Oct 2007 01:25:40 +0000

By: Carnival of Real Estate: 62nd Edition

Carnival of Real Estate: 62nd Edition — Mon, 08 Oct 2007 14:00:54 +0000

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Mon, 08 Oct 2007 00:22:28 +0000

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By: theMortgageBrat

theMortgageBrat — Wed, 03 Oct 2007 18:39:46 +0000

For those of you who are not sure about their reset timeframe, remember, understanding how your ARM works is simple as long as you know a couple of things. First, ARM products are fixed for a certain period of time ? for as little as one month to as long as ten years ? and then adjust (or reset) based on certain criteria written into your note and attached as a rider to your mortgage.

If your not sure when your ARM is going to reset, I would advise taking out the copy of your note and mortgage. Once you them out, take a look at following determinant factors:

1. when your first adjustment will be;
2. the adjustment period for subsequent adjustments;
3. the caps on the adjustments (initial, annual, and lifetime);
4. the margin; and
5. the index.

If you need more information check out the following post on our blog.

http://www.themortgagebrat.com/?p=197

By: Sniglet

Sniglet — Wed, 03 Oct 2007 17:43:48 +0000

If your mortgage is worth more than the value of your home is there any reason to keep making payments, provided the lender can’t pursue any other assets than your residence upon default? Even if you had the money, and earnings, to keep making mortgage payments, it just not make any sense to keep sinking money into a dead asset (i.e. if the house is worth less than the mortgage).

A black mark on your credit report is a small price to pay for getting out from under the stanglehold of a mortgage for a depreciating asset.

Of course, one would have to confirm with a lawyer that your particular mortgage agreement (and relevant state laws) prevented the lender from pursuing recourse against your income or assets upon default. But provided there were no other penalties. people should just turn the keys over to the bank and walk away.

By: Horace

Horace — Wed, 03 Oct 2007 17:24:18 +0000

6. If all else fails, declare bankruptcy and start renting.