Road to Ruin: Burned by Brokers
Economists, politicians, and pundits refer to "toxic assets" as if they are some unspeakable stew bubbling in a barrel behind an old warehouse. But "toxic assets" are actually mortgages and, by extension, houses and the people who live in them. Sandra Berrios is one of millions facing the prospect of ballooning loan payments forcing her and her family from their home. The bank that lent her the money is getting hundreds of millions in TARP money, but the federal dollars flowing to the bank show no sign of trickling down to Sandra's level.
My mortgage became toxic when the market value dropped about 65% and I lost all my equity. My 10.75% ARM holds firm. Insurance and living costs have skyrocketed. Lehman Brothers will not refinance or modify my mortgage. If I walk away, my house will be looted and destroyed. I may have no choice but to move to Costa Rica because I can't afford living in the states.
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