Upside Down Mortgage

Archive for January, 2008

Clinton Cra Subprime

Question: What is the significance of the Community Reinvestment Act of 1977 (passed during the Carter Administration)?

How did the changes to the law in 1995 (Clinton Administration) affect this law?

"The 1995 revisions were credited with helping to substantially increase the amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in the latter type of lending was no doubt due to increased efficiency in the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. The first public securitization of CRA loans started in 1997."

Answer: The changes brought on the mortgage crisis. The original act was bad enough. Government cannot meddle without screwing things up. But Clinton really screwed the country by making the act much worse.

The Truth: What caused our Economic Crash?

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Loan Modification Wachovia Mortgage

The rate of national foreclosures hit a record high just this last 3rd quarter of 2009. This according to Realtytrac, a real estate data and statistical company that focuses their efforts on the foreclosure industry. That means that as of October of 2009,one in every 136 U.S. homes were in foreclosure in the third quarter alone.

Despite government-led and lender-supported attempts to prevent foreclosures homeowners continue to find themselves asking, "How did this happen, and what can I do to stop the bleeding."

One option that promises to stop foreclosure and allow homeowners to lower their monthly mortgage payments is a loan modification. This process, although restructuring loans has been around for decades, has proved to be popular more recently due to the sup-prime mortgage mess.

Let's talk a second about what a homeowner can expect should they choose to attempt a loan modification, either through their lender or an outside third party such as an attorney or a for-profit private firm.

First of all lets keep in mind that the lender has its best interest at heart at all times during the process and that homeowners who receive an approved loan modification may not have necessarily received the most favorable terms and conditions.

Now as the homeowner contacts their lender, whomever that may be, they quickly realize they are biting off more than they can chew. Between long hold times and department transfer after department transfer, they find it ever so increasingly difficult to get consistent and helpful information from the vary party they should be speaking to, their lender. That is if they can get to the right person. Another hurdle the homeowner must face is not just understanding mortgage terminology, but how to precisely justify what new payment will allow them to meet their new mortgage obligations and how all the number fit together.

Lenders are very specific about what documentation is needed and if homeowners fail to send everything in that is needed, their file goes to the back of the line. Or worst yet
they deny the modification all together because the homeowner unintentionally revealed something that may not have even been accurate.

One way to avoid all of these loan modification traps is to hire a private firm such as the Mortgage Assistance Group located in Glendale, AZ. They have successfully modified loans for over 500 families and have maintained an "A" rating with the Better Business Bureau. They have done this by under promising and over delivering on each and ever file with no document complaints.

They have recently launched a discount for homeowners who have been scammed out of money by another loan modification company. Finally, the company has affordable and flexible payment plans that should fit the financial profile of any homeowner who needs their professional help.

About the Author:

Author Randy D.

Mortgage Assistance Group
623-486-4505
www.mag-az.com

Article Source: ArticlesBase.com - I Missed A Mortgage Payment, What Can I Really Expect From My Loan Modification?

Refinance Subprime Mortgage

Question: about foreclosure?

My house is with a realator for a year and hasn't sold under a short sale. should i get another realtor, it is on the verge of being in foreclosure. i haven't paid my mortgage in a year and the house is empty. what should i do,i don't want it and i was one of the many people that got a subprime loan where noone will refinance me.
How do i go about selling it myself, if i find a buyer

Answer: since you still legally own it; drop the
agent. YOUR contract long ago expired
but if you renewed it, you may have to
negotiate.

Then, try this approach; try selling
part of the house--25-50-75% and
you keep paying whatever you can.

and prepare to move back in or
then, turn it into a rental unit.

available to guide you further.

How to deal with subprime mortgage loans