ARM resetting? Get another job

The American Banker's Association put out a press release today advising borrowers to be "open and honest when it comes to foreclosure."

The press release -- in honor of National Homeownership Month -- offered tips to "help keep homeowners in their home," including "Analyze your financial situation," "Call your lender before you miss a payment," "Work out a game plan," and "Remedy the situation."
The release was almost immediately recalled, and a new version went out 20 minutes later. The new version deletes a recommendation to "Remedy the situation" by taking out a second loan or getting a part-time job.

In the original version of the press release, the ABA advised:

"A payment plan or extension is only a temporary fix to a larger problem. Find a way to gain additional income, either through a second mortgage or a part-time job. It’s important to make an effort to change your financial situation."

Somebody must have thought that sounded a little callous, or had second thoughts about advising people who are having trouble making their loan payments to take out a second mortgage. Or maybe it was just too specific. In any event, the new version of the press release was worded a little differently:

"A payment plan or extension is only a temporary fix to a larger problem. Meet with a financial planner or credit counselor to make a long term plan. It’s important to make an effort to change your financial situation."

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