Upside Down Mortgage

Archive for June, 2007

Subprime Credit Crisis

Question: US blacks see 'financial apartheid' in subprime crisis - do you see their reasoning on this?

SO...you are crying RACISM for being given a chance to own a home and FAILING because you did not pay your bills? How is this apartheid?
This all goes back to being treated EQUALLY. It is not MY fault that you chose to buy something you could not afford. Whites do it too. It is just stupidity and greed...nothing else.

http://www.breitbart.com/article.php?id=080127181914.e1z8r2hd&show_article=1

"People of color are more than three times more likely to have subprime loans," concluded the organization United for a Fair Economy in a recent report which estimated that minorities have seen between 163 billion and 278 billion dollars of their equity go up in smoke since 2000.
The city has responded by suing lenders, accusing them of targeting black borrowers and steering them to the loans granted with few formalities and at hefty interest rates to people with poor credit histories.
READ THE ARTICLE - this is not MY ISSUE

Answer: Stating the loan crisis is like apartheid is using a situation that has flared up in the news as an excuse to put forth a shaky agenda.

Fact is, it's likely that investment bankers looked to sub-prime loans as expanding profits in a market that was unexplored, and could dovetail, with the then booming housing market.

"Irrational exuberance" in the markets happen, it is about profit, and, nothing wrong with profit, but, as history has shown, it was a poor gamble by the banking community to back these loans.

Its happened before, the dot com bubble, the junk bond bubble, and so on.

To color this event as a race based type of situation is the worst kind of demagoguery emanating from the far left.

Savings & (Mis)Trust: A Credit Crisis XPLANATiON

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

What Is Subprime Issue

Question: Question about subprime lending.?

I have a question for lenders. I keep reading about all of the issues with subprime lending and foreclosures. I hear that it will be harder to get a mortgage and interest rates will be higher for those without perfect credit.

What qualifies as a subprime loan? What if your credit shaky but you have paid a mortgage on time, never more than 30 days late for like 4 or 5 years.? Would it be hard to get another mortgage? We are thinking of selling and repurchasing a home somewhere else but I don't want to get stuck with some crazy interest rate or put our life savings down.

Any suggestions?

Answer: “Sub-prime lending” can mean different things to different financial institutions. In a nutshell, it refers to a loan that is high in risk because of credit history and/or a lot of debt that could make it difficult for the borrower to pay the loan back.

The good news? Even if you are a candidate for a sub-prime loan, it doesn’t mean you are unable to receive a mortgage.

Although the number of loan options have recently decreased for people who have less than perfect credit or extremely high debt, there may still be quite a number of choices available for you.

If you are concerned about your credit, here are some things you can do to improve your credit score.

•Check your report for inaccuracies
•Keep paying your mortgage and other bills on time.
•Pay off debt rather than move it around.
•Have credit cards, but manage them responsibly. It's better to keep some and pay them on time than to cancel them all. This can raise red flags for the credit reporting agencies.

Finally, since every situation is unique, your best bet is to inquire about your specific situation with a mortgage lender that you trust. Get referrals from friends and family members who have worked with mortage professionals they like.

Hope this helps.

Jim Hates Finance - Get Out

Loan Modification Pitfalls

When you are facing the foreclosure of your home, you feel desperate. You would do anything to avoid putting your family through the trauma and interruption of being suddenly uprooted from their familiar life. It is surely a frightening time, but do not act too quickly and add more problems to your already overloaded agenda.

There are unscrupulous companies who claim that they can do magic when it comes to getting a loan modification approved. Don't believe them. Many desperate homeowners have been victimized by these con artists who prey on people who are in very difficult circumstances. Many of these people still end up losing their home because of these people who have bilked them of any remaining financial means that they had.

You can get help with your loan application without spending thousands of dollars with one of these fraudulent companies. President Obama has issued warnings through the Treasury Department that sound an alarm concerning this problem. Homeowners are advised not to pay for any service in advance that guarantees them a reworked mortgage with the Home Affordable Plan. This stimulus plan program is free of charge.

The government website is available to help you get started without any help. However, if you feel you have some questions or need assistance, you can get that through the Housing and Urban Development Office, HUD, or other free services from non-profit agencies. HUD offers free counseling that will help you address your mortgage situation and reformulate your plans.

It is a little overwhelming to some homeowners to begin the home loan modification process, and they are tempted to just completely rely on someone who claims to have the answers and the inside access. But, many people have been duped. The FBI is investigating one such scam in California that made $12 million dollars off of what amounted to just a few successful applications for assistance.

Avoid this pitfall by doing your homework. Find out everything you can about this program, and be proactive. It is your home, and you need to be responsible for finding a solution. There is legitimate help out there. Many homeowners are in your same situation, and the government is aware there is a problem with fraud involving the agencies trying to profit from the program. But, this is an ongoing investigation and mission, and they have not been able to shut them down by anyone's estimation. So, be careful.

You are quite able to accomplish this yourself in conjunction with your bank. This current loan modification program is very advantageous to those who qualify. You can get an interest rate that is much lower and terms that are much longer. This will result in a lower house payment each month. But, just don't fall victim to someone who is trying to further add to your financial problems.

About the Author:

To save your home, click here to learn more about Obama's home stimulus package.

Article Source: ArticlesBase.com - Loan Modification Without Being Taken