Wow – I’ve never seen such harsh ‘rules’ for not buying homes that aren’t more than twice your annualized income. If that was the case, I couldn’t live in my state. Our mortgage came out to be 3.8x (or 38.8%) of our annualized income – but we live a lifestyle such that we are able to live debt free (outside the mortgage) and we are able to make 2 extra payments a year on a 30 yr conventional fixed rate loan.

What it comes down to is this: If you can’t afford it, you can’t. If you’re able, you can. It is up to the responsible party to decide.

I share the sentiment of an earlier poster that said they have no sympathy for those who claim they didn’t know about the ARM. At the same time, some folks who had no intent to stay for more than 3 to 5 years are now stuck. But that was something I took into consideration when I purchased my home…so why couldn’t others see it? Perhaps they did, and they decided it was worth the risk. Now many folks do not want to accept the risk. And it blows my mind that we start to bail them out. I do feel bad and pray for them, but it is time to pay the piper.

It boggles my mind that I, the responsible person who can still pay the mortgage, am the one who is literally at the shortest end of the stick. Do I get the option to refinance for little to no fees for lower rates? That is what boils my blood.

It doesn’t take a rocket scientist to see the folks with the boat, the H2, the F350 Extended cab long bed, the RV, and the 3500 sq ft home who got the ARM or Ballon that are realized and see that it is just inappropriate. Make them pay their dues, or if necessary, face the consequences.

Your welcome!