Letters to the Editor

Re: 'Lenders weigh plan to freeze rates on ARM loans' (Nov. 30)

Dear Editor:

I think that lenders should definitely freeze home owners' ARMs who are current on payments. Not just for subprime borrowers but also for A+ credit ARM loans.

I have seen many home owners who have never made a late payment on any bill now facing foreclosure due to their mortgages adjusting. A huge problem is people who bought homes at the peak of the market, especially borrowers who put zero to 10 percent down.

When they go to refinance their homes, the appraisal comes in less than what the borrower owes on the mortgage. For example I know someone who bought a home for $250,000, put 10 pecent down and the borrower's lender pushed an interest-only ARM on him. The lender said he will refinance the borrower when the ARM is up and put him into another ARM or a 30-year-fixed loan.

When the time came to refinance, the borrower's appraisal came in at $200,000. He owes $225,000, therefore he will have to bring $25,000 to the closing table to refi. He does not have it -- it is situations like that I find disturbing. He can't sell or refi -- he can't afford his 9 percent rate (it was 5.5 percent). This is a huge problem and will only worsen with time. It is people like him who need a break. That is my take on the issue.

He has a 720 FICO score, never made a late payment, and will most likely lose his home. The lenders will end up making money in the long run if they would give people 30-year-fixed rates regardless of the appraisal.

Matthew H. Benedict
Re/Max Metropolitan
Utica, Mich.

Re: 'Maine 'Open MLS' petition drive fails' (Dec. 5)

Dear Editor:

With all the websites that give full information on listings, why is the public MLS needed? What would it accomplish other than shatter the structure of the Realtor associations? Buyers may already gain all the MLS information EXCEPT owner names and contact and access information, which is a security measure.

Ginny Ollis
Coldwell Banker Residential Brokerage
San Diego

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