Thank you, BlackOps719, for the informative thread. I always knew that there were unethical people out there, who would use any loophole or sniff out any scheme to separate people from their money. (haha I had to pay more on my CA energy bill when Kenny Boy manipulated the energy market in 2000.) These are the faces that need to be on wanted posters!

I bought my first house in 1977, having to move to a rural area to afford one. Even back then, ARM's were not the best way to mortgage, but were being offered more and more as a way for first time homebuyers to enter the market. The reasoning was that buyers were going to increase their INCOME by wages/salaries increasing (raises, entering a higher paying job, a spouse entering the workforce) to offset any rise in payment.

Since worker income has actually been flat or decreasing since those times, a homebuyer with an ARM would have to depend on the value of the house increasing, not income. Trouble ahead! Jeez, in my town, $10/hr is considered good pay, yet homes were selling for $400,000!!

When the American middle class became the consumer class, the easiest way to keep up in a changing national/world economy was to go deeper into debt. Trouble behind!

The middle class economy has been allowed to trickle down, the drain. People like the ones you mention have put the last squeeze on families' pocketbooks, much as one gives the lemon slice one last twist to squeeze out the last drops.