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The original idea behind adjustable rate mortgages and interest only, was to enable people that couldn't qualify for a "standard" mortgage to be able to get into a home and then refinance to a ixed rate mortgage when their credit situation improved. Unfortunately, the lenders and realtors began to get money hungry and used these types of homeloans to get people into homes they couldn't actually afford. Not that it is the lenders fault entirely. As a home buyer, or purchaser of anything that is being financed, it is the purchaser's responsibilty to ensure they can actually afford the payments on what they are buying. You never hear of someone buying something with no interest no payments for 12 months being shocked when their payments come due. Because they understand the terms. With her actually having actually being a loan processor, she should have known she needed to have a good savings plan to protect her investment. Unfortunately, she was like everyone else that was in denial about the "housing bubble". Now she is paying the price, and more and more people will be joining her every month. Hopefully, everything will work out for her in the future.
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"Do what you can, with what you have where you are." ~Teddy Roosevelt~
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