Upside Down Mortgage

Archive for April, 2007

Report Mortgage Fraud California

The economic damage caused by the fall out from the sub-prime loan crisis is limited, and should not cause major economic damage to the nation's housing markets or greater U.S. economy, according to an exclusive report by Housing Predictor.

Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states and regularly surveys markets on issues related to the nation's housing markets.

The toll from the sub-prime melt down will exceed more than 2-million foreclosures nationwide. But the impact is limited in scope to areas that have less healthy local economies, where home owners have been forced to qualify for less desirable sub-prime mortgages as a result of lower credit standings.

Housing Predictor surveyed more than four dozen markets from the east coast to the west to gather it's findings, and details the report on it's web site. Vacation and second home markets along with higher income areas are immune from the fall out, researchers determined, as a result of few sub-prime mortgages.

Some markets in high priced California are severely impacted by the sub-prime crisis, while others in the state feel little effect. Housing markets from coast to coast are almost waiting for the proverbial boot to drop, unsure of their markets susceptibility to the sub-prime crisis, but many markets are insulated from the damage.

Second home and vacation markets are feeling the least impact, mainly because many second home owners pay for properties in cash or have smaller mortgages on their properties.

The sub-prime melt down has been the single largest factor affecting the nation's real estate markets since the Savings and Loan Fraud Crisis in the late 1980's. The Housing Predictor study shows many markets are unaffected.

The nation's real estate boom, which lasted more than five years in some markets had a great effect on those who could not qualify to become a home owner because of poor credit conventionally, and thought the only way they could ever get a mortgage was through a sub prime mortgage. But the real estate nation's slow down has already leveled off in at least 18 states, where housing markets are appreciating. Another ten states markets have stabilized and are showing signs of future appreciation as the markets adjust.

About the Author:

Mike Colpitts is the Editor of Housing Predictor. To see the entire report on the sub-prime crisis, check on your markets forecast and search real estate listings visit

http://www.HousingPredictor.com

Article Source: ArticlesBase.com - Exclusive Report: Limited Damage In Sub-prime Fall Out

Is Winning In The Cash Flow Business A Scam?

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Mortgage Default Insurance Premiums

Question: Why do I have to pay for mortgage insurance?

Mortgage insurance does not protect me an any way. I pay the premiums, and if I default on the mortgage I get nothing and my credit is hosed. In addition, because I pay for it and it doesn't protect me there is no really competition. It is essentially price fixed and I get stuck paying high premiums.

Wouldn't it make more sense for the banks to pay for there own mortgage insurance on who they feel is a risky investment? Wouldn't that cause the premiums to be lower because the banks would search for the best premiums? It seems like the end result to the customer is that we pay for it one way or another, but if there is competition we would pay less and the banks would pass the savings/cost on in interest.
I'm not saying PMI is a bad thing. I'm just asking isn't there a better way?

Why settle with that's the way it is.

Maybe if we don't like it we should write our congressmen? They pass enough bad laws every year that maybe 1 or 2 good ones can slip through the cracks.

Answer: you DON'T HAVE TO PAY PMI. Just put 20% down and there is no PMI.

With the less you put down, the higher risk you are to the bank.

People say PMI is a rip off. I totally disagree. It allows you to get into a home with less then 20%.

Mortgage Help News

Question: What would happen to my mortgage if anything went seriously wrong with Northern Rock?

Whilst i dont think it will, and i have listened to the news which states that some of the stories surrounding NR are exaggerated to the max it did get me wondering what would happen if NR or any other bank went into liquidity. Would i simply have to continue paying my mortgage to another organisation?

Answer: Nothing will happen to your mortgage in that you already had the money and bought the house. You will have to keep paying to someone, regardless.

1-Loan Modification Help News Secret ModByLawyers Mortgage Relief