Let's not forget the HELOCs those are also adjustable rate. Most people used those to pay off their credit cards and buy SUVs. They basically put their house up for a new car or an unsecure loan. I was told by one person who took out a HELCO that he just paid off his SUV. I told him no, you just mortgaged your car. He did not get it like a lot of people. I bet they also racked those credit cards right back-up and can't refinance now. This is just the tip off the ice-berg. It's coming we were the last in the country to have the boom!!!(LaSalle9529, March 18, 2007 10:24PM)

George you sound just like frank always complaining i have lived in scottsdale all my life and frank when are going back to your great state of california(Dan1174, March 18, 2007 09:55PM)

We get screwed on everything in Az. Gas, electric, insurance, interest rates and our lesbo Gov. is taking vacations to Iraq!(George4782, March 18, 2007 09:49PM)

So,in other words, not only is this a personal responsibility issue, but it is also about marrying the wrong person? I watch neighbor after neighbor go down in debt and the divorce rate is near 100% on those deals. Fake @#$%& people,for sure. These Einsteins were the same people that snickered at me because I wasn't invested in dot com stocks.Hmmmmmmm(david3813, March 18, 2007 08:30PM)

I am a loan officer, people would come to me with subprime loans and the contract was for x amount and within 30 days it woud be 20 or 30 thousand more. They may of not been able to afford the higher payment after 3 years, but the object for many was to make money and sell. The loan officers did very little to perpeuate the problem, if the lenders did not want to do the loan, then that is why they have underwriting and multiple layers of fraud prevention. The loan officers find programs for customers. A bad loan officer is one that can not find a program for a borrower, if you are so ethical and moral that you want to tell someone not to have a home or tell them they should only live in an apt for the next 15 years, then you were in the mortgage business for the wrong reasons. I always told my clients that it would not be any less expensive to get into a home, than today, values go up, interest go up, therefore payments go up. I just told them to spend the 40 to 50 ddls a month more for a 30 yr fixed, those on ARMS are there on their own decision. I didn't offer or do Option Arms.... I thought that was pure theft and greed by the lenders....
Lenders... they wanted the ARMS if they didn't they would have not of made the interest adds so much for having a fixed. There were trying to create a market for their refinancing...
Why hasn't anyone mentioned the builders, they are the ones that created the market.... they created the demand by increasing value on unbuilt homes.... then to get comps they finance the first few homes at the inflated price and then increase the prices and finance that and over and over..... you would have been foolish not to sign a contract for x dollars and not have to make the payments for a year and have a house that would appraise for 60, 80 or even 200k. All you did was sign a contract. Builders were the real winner, but they drove the market the whole way.... not they are lstill making money at the lower prices..... they just feasted on everyones greed....
The state.....first, they want changes, huge changes.... after the biggest mortgage market in history..... all the scammers andsuch have gone on and are getting easy money else where, they aren't going to wait thru this to make a living. the scammers want the easy buck....
If the state had its citizens best interest at heart... they would have never had a pre payment penalty...... how many drown because they cant afford to leave the flood.....
The state, the builders, the lenders all driven by the dollar...... we ultimately pay the price.... I am glad I was able to get so many people in homes. I hope that they choose to keep them. Because today and in the future those sub prime borrowers will not be able to have a home of their own and live the American Dream.
One last note... I am not from PHX originally, where I came from... you would work 2 jobs if necessary, and make all the sacrifices necessary to have a home..... I have people now that the wife would divorice before working to keep there home..... and they will divorice when they lose their home... this is PHX..... a little shallow and alot self serving.(ja8435, March 18, 2007 07:56PM)

"Personal Responsibility" is the key phrase.Credit criminals never exercise this.They just want to know where the rest of the rats get their cheese.(david3813, March 18, 2007 07:41PM)

I am constantly amazed at the borrowers who come to me with a credit history that shouldn't allow them to even get a $300 secured credit card yet they feel its a good idea to buy a house. Yes, lenders loosened their guidelines way too far, but there was no way the borrowers didn't know the potential consequences. Most of these loans had a 2 or 3 year fixed payment which was plenty of time to allow the borrower to get his credit straightened out and refinance. If they don't do it, it is nobody's fault but theirs.
I'm sure there are some unscrupulous loan officers and brokers out there but I would bet the large majority of them made everything clear to these borrowers at the outset. These people are always finding somebody or something else to blame for their problems. It comes down to personal responsibility.(Don9593, March 18, 2007 06:58PM)

I am constantly amazed at the borrowers who come to me with a credit history that shouldn't allow them to even get a $300 secured credit card yet they feel its a good idea to buy a house. Yes, lenders loosened their guidelines way too far, but there was no way the borrowers didn't know the potential consequences. Most of these loans had a 2 or 3 year fixed payment which was plenty of time to allow the borrower to get his credit straightened out and refinance. If they don't do it, it is nobody's fault but theirs.
I'm sure there are some unscrupulous loan officers and brokers out there but I would bet the large majority of them made everything clear to these borrowers at the outset. These people are always finding somebody or something else to blame for their problems. It comes down to personal responsibility.(Don9593, March 18, 2007 06:57PM)

Stupid is, as stupid does...
(Sa9934, March 18, 2007 05:07PM)

QUOTE: What next, applying for a credit card without a Social Security number perhaps?

REPLY: It's done everyday. Ask any illegal mexican or just go to BofA

(Mack9386, March 18, 2007 04:48PM)

#1 zip code 85242(Mack9386, March 18, 2007 04:42PM)

For ANYONE that thinks this isn't an issue throughout the ENTIRE metro area, get yourself on a foreclosure e-mail distribution list and see for yourself just how quickly the numbers are increasing across the board. These foreclosures are also the result of those who re-fi'd to spend some of their ill-perceived home equity.(jared175, March 18, 2007 04:00PM)

A lot of folks decided to take that route in a gamble in the housing market with the intent of making a few bucks,and some folks who barely qualified took that route to ensure they qualified. The market leveled out and declined and the gamble was lost. We now have a buyers market it you have the money.

As they say, one man's loss is another man's gain. I sympathize with those that lost, but life goes on.

(RICHARD1839, March 18, 2007 03:36PM)

It would be more useful to know about subprime lending and foreclosures by zip code in the Phoenix MSA rather than statewide. As an aside, when I was living in AZ I was struck that home prices continued to escalate out of control, but there did not seem to be a corresponding increase in high paying jobs in the Phoenix MSA. No wonder people had to resort to interest only mortages, $0 money down and variable rate to afford what were and are really unaffordable residences. Everyone thought that they were entitled "to it all".(Bobby3017, March 18, 2007 03:29PM)