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oldtobor
Jun10-08, 04:33 AM
I was reading that the ARM (adjustable rate mortgages) will rest every 6 months or a year etc. This means people will have to pay a higher monthly rate, so what you pay for a home may jump from 1,000 dollars to 1,200 dollars a month etc.

In order to avoid this big mess of people not being able to pull it off anymore, why not block all resetting of ARMs ? CAN'T THE GOVERNMENT SIMPLY SAY, FROM NOW ON ALL VARIABLE MORTGAGES ARE FREEZED ?

I know there are some technical problems, but compared to so many people losing homes, isn't it better to just freeze all mortgages and call it a day ? Thanks if anyone knows if it is possible and why it is not.