|
| Saturday, March 03, 2007 |
| Foreclosures rising among high-risk US mortgages |
The Christian Science Monitor article: Foreclosures rising among high-risk US mortgages reports on the fall-out of those risky no-doc, interest only, and adjustable rate mortgages. Ms. Myers is also coping with mortgage sticker shock. As sales director at a Colorado golf course, her commission-driven income depends on weather. When she got her no-down payment loan last spring, costing $2,200 a month, the weather was good and she was bringing home as much as $6,000 a month. When snow came early to Denver, the golf course closed, and her monthly income has plummeted to $2,200 – only enough to cover the mortgage and nothing else. She's maxed out her credit cards and borrowed from family to make payments over the last few months. Her March payment is now due and she only has $1,000 left in the bank.
"They won't take a partial payment, and they say they won't work with me until I've been 60 days late on my mortgage," she says. "I've never been late before, and I don't ever remember being in a financial situation like this before." |
| posted by Boston Gal @ 11:46 AM *
* Subscribe to Boston Gal's Open Wallet |
Links to this post:
|
| 3 Comments: |
-
This is an unforeseen event, and not necessarily a result of an exotic loan. Even if a loan is conservatively structured, when an event like getting fired or getting your income reduced by 2/3, there is no way to cover for the loss of income, unless you have take out a loan or replace your income.
Usually bank will help you if you have an unforeseen circumstance such as a loss of a job if it is temporary. They can structure a payment plan after your income goes back up.
http://wisdomfrommywife.blogspot.com
-
No sympathy. Absolutely none.
-
I think calling it an "unforseen event" is incredibly generous. Someone who works on commission needs to prepare for the fluctuations in their income.
|
| |
| << Home |
| |
|
|
|
|
This is an unforeseen event, and not necessarily a result of an exotic loan. Even if a loan is conservatively structured, when an event like getting fired or getting your income reduced by 2/3, there is no way to cover for the loss of income, unless you have take out a loan or replace your income.
Usually bank will help you if you have an unforeseen circumstance such as a loss of a job if it is temporary. They can structure a payment plan after your income goes back up.
http://wisdomfrommywife.blogspot.com