Mortgage Crisis Poses National Housing Recession Threat

Author: Mike Colpitts

The U.S. mortgage melt down has produced America's real estate crisis with falling home prices and record foreclosures, and it now threatens to produce the Nation's worst economic disaster in history, according to a new report by Housing Predictor.

The real estate markets rocked for years with double digit appreciation or near double digit appreciation in many areas of the country only to come slamming down. Some markets have dropped as much as 40% from their record highs.

The crisis has worsened amid souring buyer sentiment, fearing prices will fall further. More than half of the nation's housing markets regularly monitored by Housing Predictor have sales levels that are the lowest in more than two decades.

Prices of many homes are falling at faster rates than at the peak of the U.S. Savings and Loan Fraud scandal in the early 1990's.

The real estate crisis is beginning to broaden, moving into markets that have not yet felt the impact. But there are exceptions to the slow down, which are included in the Housing Predictor forecasts. Ten state's markets remain strong enough to be considered as overall appreciating by Housing Predictor analysts.

Housing Predictor forecasts more than 250 local housing markets futures in all 50 states and provides thorough analysis on the fall out from the mortgage crisis.

California, Florida, Michigan and Nevada are the most severely impacted states. But the majority of states now have falling housing prices in most markets.

Adding to the problem is a new estimate that now paints a disturbing picture of just how massive the growing crisis has become. An estimated more than 5 million adjustable rate mortgages are set to be readjusted before the end of 2009, and many homeowners are expected to be unable to make the higher payments required to keep their homes.

The problem started in the subprime mortgage markets and has now spread into conventional mortgages, most of which were new creative financing provided by mortgage companies in order to make the loans or required little qualification to obtain.

Article Source: http://www.articlesbase.com/real-estate-articles/mortgage-crisis-poses-national-housing-recession-threat-224002.html Read More!

Subprime Mortgage Crisis; Democrats Want Too Much and Republicans Want Too Little

It’s the same ole same ole, sound-bites and finger pointing as to who can solve the mortgage crisis plaguing American homeowners. During an election year it’s harder than usual to separate the malarkey from the earnestness of the politicians on this matter. Each side is shucking and jiving or running and hiding from the real issues facing America directly resulting from the subprime mortgage crisis. Let’s look at both sides of the aisle. First a disclaimer, I am fiscally conservative but I am attempting to be nonpartisan in this piece, shoot me a line if I miss the mark.

Republicans – This is a loser issue for the Republicans, they know it and the Dems’ know it. Logically, If we were to simplify the mortgage crisis down to the ridiculous, there are really only two strategies of which the government can attack. Helping the people who are about to lose their homes through direct government involvement; or helping the companies that are holding the loans so that they can become healthy and help the people. Obviously the Republicans are in favor of the latter, and guess which strategy “plays” better on the evening news.

Any move that Republicans make to help “big business” is met with outcries from the left of cronyism and corporate welfare. The truth be told, if the Republicans had their way I have no doubt that the good ole boys on the golf course would be the first beneficiaries of a corporate bail out. As political pressure mounts from the media and the left to do something, Bush and company have been forced to create “token” programs that only help a select few homeowners. Doing this this gives Republicans something to smile and wave to the cameras about and is analogous to putting a Band-Aid on a gun shot wound.

Commenting about the latest Bush initiative to help homeowners White House spokeswoman Dana Perino said: “This is not a silver bullet that will solve all the problems in housing, but it will help some additional people stay in their homes, and that's something the president wants to see,"

Excuse me, did you say "this is not a silver bullet?" So what you’re saying is that we are only shooting the regular bullets that do little more than piss off the werewolf? Hello McFly, we need the silver bullets; this monster is getting bigger and stronger every day! Taking valuable time and resources to inact inept programs takes away from the time we could be using to address the problems with the "silver bullet."("Hello McFly", from the movie Back to the Future, one of my favorites.)

Democrats – If we could get Ben Affleck to perform for the camera as well as the Democrats do he might have another hit movie. Demigoding this issue will not solve it any faster than creating token programs will. Democrats are hell-bent on moving tax payer dollars to the people at the tax payer’s expense to solidify their voting base. From what I have seen each congressman and woman seem to have their own plan of how to "save the poor people" that have been swindled by the evil unscrupulous banks. They all smack of pandering that rewards irresponsible homeowners for bad behavior channeled through a myriad of government agencies.

The second part of their plan is to strap the banking industry with a new list of regulations that is the size of a phone book restricting how they lend money. This will bring lending to a screeching halt, raise taxes on the self employed and create a “field day” for trial lawyers. History has proven time and again that when the government over regulates the banking industry banks simply pick up their toys and go home. The mortgage industry has figurtively placed their hand on a flaming hot skillet, telling them not to do it again is unnecessary. However in the Democrats' defense, at least they have a plan.

What we need from our leaders is for them to be leaders. Each side has a valid point and is either promoting an extreme version of it for negotiation's sake or dragging their feet. Meanwhile people are losing their homes and businesses are failing left and right, pun intended. The dollar is at rock bottom,we hope, and confidence for mortgage backed securities continues to threaten future lending. Each side of the aisle needs to put away the partisan bickering and come together with a plan that helps businesses and homeowners, NOW.

If you think I have "missed the mark" please feel free to shoot me a line, this article can be found on the mortgage crisis blog and is open to comments and suggestions.

Article source Author: Aubrey Clark Read More!

Subprime Mortgage Crisis – Why Can't Lenders Just Fix the Bad Loans and Move On?

With all of the foreclosures and bankruptcies that are being triggered by the subprime mortgage crisis why don’t lenders just put all of these homeowners in better loans? We are asked this question on our mortgage blog quite often. It’s a reasonable question too. If it’s the bad loans that are causing the problems wouldn’t be cheaper for the lenders to just bite the bullet and fix the bad mortgages? Meaning, wouldn’t it cost banks less money to lower interest rates and fix adjustable rate mortgages on their loans than the billions they are losing from all of the foreclosures?

In some cases banks are doing just this because it does make sense. However as I will explain, this is much easier said than done for most banks. The reason is that very few banks these days “own” the mortgages they service. A few regional and national banking chains do maintain a portfolio of loans that they originated, but by in large most banks do not. Most mortgages are owned by a pool of investors and are merely serviced by the company that homeowners send their payments to.

This is why when you call your current lender that you already have to refinance they make you re-qualify for a new mortgage again. While I was originating mortgages, I had countless borrowers call me to refinance that were disgusted with their mortgage company for that very reason. It seems to reason if you have paid your mortgage on time for ten years the bank would just lower your rate to keep from jumping-ship to another lender. The problem is that they have to put your new loan in a new portfolio and sell that portfolio to other investors, this is called securitizing.

Banks and lenders buy money to sell much as retailers do for the inventory that they keep on their shelves. For instance, a toy store can purchase a crate full of toy soldiers at a wholesale price then put them on the shelves and retail them for a profit. Banks buy and sell money the same way from their retail, or mortgage divisions. The only difference is that banks reach their loan capacity they have to take these groups of loans and sell them to investors on Wall Street. If banks didn’t do this they would loan all of their money and be out of the mortgage business.

Now you have a group of loans that is being serviced by the bank that is owned by 1 to 100 different investors. That group of loans is treated like the wholesale the box of toy soldiers that is sold by the case not individually. To ask the investors to reach into the “box” and pull one soldier out and alter it would disrupt the total value of the box as a single unit. This would also upset the other investors who have money tied up in the box of toys.

Staying with the toy soldier analogy, what has happened to banks in this crisis is they can’t sell the box of toys to the investors anymore. The retailer has $100 invested in the box of toys and investors believe that the toy soldiers are a bad investment and will only offer $70 dollars for the box. This means that the retailer has to hold onto the box until prices rise back to $100 or sell the box for the $70 dollars and take the loss. This is the same with banks today; either they cannot afford to sell their loans or they have chosen not to and ride out the storm.

Both way lenders and banks have stopped buying and selling money as freely as they used to and cash is in short supply. When supply is short and demand is high prices typically go up. This is why the Federal Reserve Chairman keeps lowering the prime rate in an attempt counter higher rates that would almost drive a nail in the coffin of retail lending. As of this article Atlanta mortgage rates are around 5.75% for a thirty year fixed mortgage and would probably be in the mid-sevens without Bernanke’s involvement.

Passing legislation that over regulates banks and lenders will not solve our problems. Neither will instituting individual government plans aimed at helping a finite amount of borrowers like some in congress have suggested. The answer to this subprime mortgage crisis will be derived from a plan to restore confidence in mortgage backed securities that will allow the flow of money to open up once again. The free market will correct its mistakes and lending will begin a new day.

Article source Author: Aubrey Clark Read More!

Three Barriers to Solving the Mortgage Crisis

In late 2006 the economy was showing indicators that pointed to a looming mortgage crisis that would ultimately disrupt the flow of business in the secondary market. Investors, who are essential to the flow of money, basically ignored the warning signs but began trading more cautiously. What they ignored was the “perfect storm” as it relates to our secondary mortgage market. The housing bubble burst, sub-prime loans began adjusting, investors stopped trading, and mortgage companies were left holding mortgages that were not worth what they paid for them.

A by-product of the housing boom was an addiction to credit largely funded by the rising equity in our homes. A large portion of our economy was deeply invested in this boom. The chain of industries that profited from and helped propagate the boom is endless: builders, real estate brokers, investors, appraisers, surveyors, paint stores, home supply chains, lumber companies, marketing companies, architects and of course mortgage companies. In a financial game of musical chairs it was the mortgage companies who were the ones left standing.

The mortgage companies, fueled by their own greed and an economy that demands the continuous flow of goods and services, invented new ways to “move money” to a larger segment of the public. As competition between banks escalated, new lending products were invented to capture a larger share of this market until they were basically handing out loans to anyone that could fog a mirror. Banks, who had an endless supply of money via their investors on Wall Street, sold the loans for a profit only to reload to do it again. The problem was that these loans were ticking time-bombs with short fuses, each dependant on rising house values.

As we all know that ship has sailed, leaving our economy in shambles in its wake. The problem that we are faced with is not “who’s to blame”, but rather, who can fix it. The most obvious answer is our legislative group and the banking industry. Unfortunately, those who would be involved with the recovery have either a political agenda or are just trying to stay afloat but it is the public that’s suffering. The writers at Lendfast.com, a nationwide home loan services company, have come up with what they feel are the three main reasons we can’t solve the current mortgage crisis:

1) Politics – In an election year, neither side is willing concede a point of view that could possibly allow the other side to claim victory in solving the crisis. The “haggling” approach to passing legislation allows each side to claim victory on the local news; however the “local news” in an election year is now the national news. If a bill is passed, it is likely to be an ineffective and will have to be revisited in the future by the judicial branch.

2) Lobbyists – Legislators are supposed to be representing their constituents, meanwhile the lobbyists are representing the banking industry. Throw millions of dollars into the equation and a hand-full of representatives that spell mortgage c-o-u-n-t-r-y-w-i-d-e and the chances of getting real help for the “average Joe” is either impossible or a long time away.

3) “Baby with the Bath-water” – It is almost certain that a bill will pass this year, and as mentioned earlier it will probably be ineffective or an over-regulated nightmare. It is politically convenient to punish the “unscrupulous” lenders by enforcing regulations that sound good on paper. However, like most people, the extent of most legislators’ knowledge of the mortgage industry was learned at the closing table. It is pointless to pass regulations that restrict banks from lending money to the very community they’re trying to help.

America must solve this crisis by holding our representatives in Washington accountable for their actions or lack of actions. There is one advantage to the election year, and that is we get to vote. We can throw the “babies out with the bath-water” as well. If you want real change look past Democrats or Republicans and vote for the best candidate to help you.


Article source Author: Aubrey Clark Read More!

Mortgage Crisis – the Crooked Predatory Lenders

Everyone by now is aware of the looming mortgage crisis and has probably added their two cents as to its cause and effect on the financial world. Having been in the mortgage business a little over ten years I have read most of the press that is covering this historic event in America and I thought I would chime in as well. As a result of the controversial headline I assume that most of the people that will read this column will do so predisposed to hate it or love it. Either way, I hope you continue reading as I feel it will shine a light on this subject that is often neglected.

"Lenders and brokers didn't fret about a borrower's long-term prospects of maintaining payments because they collected their profits at the closing table; the loans were then resold to investors." Maureen Downey Atlanta Journal Constitution

This quote is not untypical of most articles written on the mortgage crisis. It would appear that columnist feel that it is politically correct to point the finger at smaller brokers branding them "predatory lenders." Even reporters whose primary focus is finances seem to cover the sound-bites over the substance of the mortgage crisis. They opine about unscrupulous lenders and brokers whose sole intention was to rip-off the poor while making millions in the process. The truth is that most of the reporters and politicians covering this story know about as much about mortgages as the first two articles tell them from a Google search. For those who fall into this category allow me to explain.

Here is how the system works for brokers and mom and pop lenders. Brokers primarily work with banks for “A paper” borrowers and some sub-prime borrowers. Almost all of the major banks have or had correspondent sub-prime division as well as their normal operations. This list of banks names such as, Wells Fargo, Chase, Washington Mutual, Indy Mac, Countrywide and countless other large and mid-sized regional banks. These are the institutions that set the guidelines for the type of sub-prime mortgages they would buy. Once the loan is closed these banks buy the "paper" from the brokers to bundle up and sell on Wall Street.

As competition among these banking giants grew their tolerance for sub-prime underwriting standards dropped for specific niche borrowers. Soon we had a dozen banks each having their own sub-prime division and competing for different niches in the sub-prime market. In an attempt to gain more market share these banks would employ account executives to visit the small brokers and lenders to “teach” the loan officers how to get certain borrowers through underwriting in their specific niche's.

As a result of competition, the capacity to qualify for mortgages was lowered and mortgages flourished. Builders began building housing on the “wrong” side of town in an attempt to capture an otherwise untapped market. These builders hired advertising and marketing companies to advertise their products. Then, they hired real estate agents to sell their products, who in turn worked with lenders and appraisers that could get their clients loans. Lenders that could not or would not accommodate the demand of sub-prime request were in danger of closing down. No one knew that property values would pop and defaults would rise, nor did they care.

America became a nation addicted to refinancing as property values escalated across the nation. Credit cards were charged to the hilt and refinancing saved the day. Borrowers with good and bad credit flocked to mortgage companies in record numbers to convert their revolving debt to lower rates and began the cycle again. When the real estate “bubble” burst and property values plummeted, these people were now unable to refinance their homes to reduce their debt. With huge credit card payments looming and mortgages that were beginning to adjust home owners could no longer cope. Thus the mortgage crisis.

Now that default rates are up on the portfolios (groups of loans) that the banks are holding investors do not want to buy them. This forces the banks' to hold their “paper” which has created a cash-crunch and caused banks to tighten the reins on their lending practices. Through this whole chain of events almost all “reporters” can only find stories to write about the evil “greedy lender” with a prejudicial inference toward the smaller brokers and lenders. Think about it; have you seen any stories about builders, real estate agents or marketing companies that contributed to the mortgage crisis?

If we open a paper now days all we can see and hear about the sub-prime mortgage crisis is politicians and columnist lamenting for government involvement as if they had a clue to the outcome of their actions. Have you seen the bill congress is proposing? The answer is a resounding “no” for 99% of America, reporters and politicians as well. The bill proposed not only wipes out sub-prime lending for good; it raises the bar for ordinary mortgage borrowers to the point that a large segment of them will not qualify either. All of this is done in the spirit of helping the “poor” avoid predatory loans.

I wonder if any the pundits will report about the 95% of current sub-prime mortgage holders who are making payments on time right now? Do you think they have considered the home owners that have had to file bankruptcy or had a foreclosure as a result of the current circumstances? With the current legislation proposed by congress and championed by reporters these people will NEVER be able to buy a home again. Are we to assume that the "poor" should never buy a home as the bill does? Just today Fannie Mae raised the threshold for borrowers who have had a foreclosure to 5 years!

Large banks have facilitated a large portion of this mess America finds herself in. The problem did not start with the small lenders nor will it be fixed by killing them with regulations. After billions of dollars in write-offs, fired CEO’s and hostile takeovers’ the banking industry is not eager to make the same mistakes twice. Throwing the” baby out with the bath water” legislation will only fuel this crisis, not end it.

Article source Author: Aubrey Clark Read More!

Top Ways to Benefit From the Current Mortgage Crisis

The current mortgage crisis might be a nightmare for the people who are directly involved in it. However, with a little bit of smart planning and a lot of hard work you can benefit from this mortgage crisis and come through the other end with flying colors. Remember that not every crisis has to be the end of the world, and if you are considering getting into the housing market you might be able to benefit from the current mortgage crisis in more ways than one.

Stable Interest Rates

The first way that you can benefit from the current mortgage crisis is to take advantage of the now stable interest rates that you can find. Many lenders are aware that people are no longer keen to invest in changing interest rates, and that many of these have led to foreclosures. Therefore, there are beginning to be many lenders that are advertising their own brands of stable interest rates that will not be changing with the market. These rates are something that you should take advantage of, because they will allow you to lock down your rates and your home payments for the life of your loan. If you can budget in this way, you will be able to get the home of your dreams at an interest rate that you can really afford.

Hold On Tight!

If you do have a home and are fighting with the market, the best thing that you can do is to buckle down and hold on tight. If you can keep your home through this crisis, it will end up being much better for you in the end. Remember that many lenders who put out adjustable rate mortgages are now allowing people to change to a fixed rate mortgage. If you can talk to your lenders and go through this process before you have to deal with foreclosure, you will be able to get an interest rate that you can afford, and a locked down home payment that you will be able to take care of each month. If you haven't fixed your rate or you cannot do it, hold on to your home as long as you can. Are there other things to sell or other ways to get the money for your home payment? If you can hold onto your home through the mortgage crisis, you will find home payments dropping again and will soon have more money than you do now.

Remember that you should also avoid the temptation to get out while property values are so low. Even if it seems like it is a better idea to get out before values dip any lower, you will actually lose money if you sell in the middle of the current mortgage crisis. Therefore, if you can hold onto your property until the values go back up again, you will be able to make your money back, or even make more money. Remember that this crisis cannot last forever, so if you can ride it out in whatever way you can you will benefit in the end. Remember that often patience is the best key that you might have to riding out the current crisis.

Invest (if possible)

One of the biggest ways that you can benefit from the current mortgage crisis is to invest if you can. If you are able to buy or invest in property that has been foreclosed upon, you will find that you can get this property at a much cheaper rate because of the foreclosure. This is something that will allow you to gain property and to gain money as well. The best thing to do when you invest is to buy a property and then sit tight on it until property values go back up again. They will eventually rise once more, and you will find that at that time you can resell your property and find yourself with quite a profit. If you are able to buy property at this time, you will surely be one of the people who benefit the most from it in the end.

No crisis can last forever, and that includes the current mortgage one. If you are able to hold on to what you have, invest in what you can afford, and lock down good interest rates, you will find that the market will eventually turn and you will again be able to prosper. You can take advantage of all of the other things that the market has to offer, and this crisis will pass you by without even a mark.


Article source Author: Grant Eckert Read More!

Mortgage Crisis Tips

A year ago most Americans had never encountered the word “subprime”, but today it is a notorious household word. And in too many households, it is uttered with contempt, despair, frustration, or some combination of those stressful emotions. The fact is that all of us – even those who have good credit and no mortgage whatsoever – have been somewhat affected by the so-called subprime mortgage crisis. What was originally explained as an isolated problem limited to an obscure portion of the overall mortgage market has now become a far-reaching global financial problem.

While the mess did start within the subprime industry – which accounts for only a tiny percentage of American home mortgages – it has now become everyone’s problem, either directly or indirectly. By the end of the third quarter of 2007 it had become widely acknowledged and conspicuously apparent that the subprime lending catastrophe had spilled over into a wide range of sectors beyond the high-risk lending arena. Experts have even predicted that the entire USA economy could plunge into a severe recession, thanks to the current mortgage and housing crisis. What this means for the average homeowner or buyer of real estate is that the market has changed dramatically.

Here are some insights into the current mortgage situation, and how it may impact your ability to take out a new mortgage or refinance an existing one:

The Proposed Rate Freeze

Much of the trouble with loans and interest rates involves adjustable rate mortgages with so-called “teaser” rates that start off at super-low, highly attractive rates. Homeowners pay relatively small amounts for the first few years, but then the rates readjust. Because prevailing rates have climbed dramatically, the readjustments often mean that monthly payments spike and can even double. Borrowers find themselves unable to make the new payments so they default.

Approximately 2 million of these ARM loans will reset higher within the next 18-24 months, so government officials have called on lenders to allow a temporary rate freeze or moratorium on resets. They hope this will give homeowners time to get back on their feet. Investors who backed these loans may disagree, so the proposal might get stalled. Even if it does go through, only homeowners who have keep up with their payments will qualify for the freeze. So it pays to keep up with your mortgage – even if it means financial sacrifices elsewhere.

Refinancing and Home Equity Loans

Lenders including Citigroup, J.P. Morgan Chase, and Wells Fargo have been lowering the maximum amount that borrowers can finance in some particular locations of the country where home prices are falling especially fast. Your chances of qualifying for a refinance may be diminished if you live in an especially foreclosure-prone area, even if your own home has maintained its value.

Lenders are also taking a harder look at appraisals, credit reports, and income. Applying for a refinance or a home equity loan during the mortgage crisis will be more challenging, so it is important to bolster your credit, provide excellent documentation, and be realistic about pricing and market value in terms of equity or sales prices of listed homes.

The Status of Jumbo Loans

Buyers who need jumbo loans – those unconventional mortgages exceeding $417,000 – will find that they are also in short supply, just like high-risk subprimes. The reason is that both subprimes and jumbos depend heavily upon private investment for their source of capital, and many private investors are sitting on the sidelines of the current tumultuous market. So if you plan to buy an expensive home and expect to borrow with a jumbo, you can expect to pay a hefty premium. Rates of jumbos have jumped considerably, and some mortgage brokers cannot even find jumbos for their clients, except at prohibitive prices.

If you are shopping for a jumbo at this time, one strategy is to first shop long and hard for an excellent and well-connected mortgage broker who charges reasonable fees. Less experienced brokers may not have the resources to locate a jumbo, or they may only be able to arrange them with those lenders who charge top dollar. For buyers who are close to the price of a conventional loan, it may be better to use two loans and piggyback them to come up with the funds. A conventional loan for just under $417,000 can pay for most of the purchase, and then you can take out a smaller loan – that you’ll pay higher interest on but can hopefully pay off or refinance soon to a better rate – for the remaining balance.

To successfully navigate today’s market is not impossible, so don’t despair. You just need to employ a fresh perspective, updated information, and reliable resources – including experienced and trustworthy lenders who can creatively assist with borrowing hurdles, options, and decisions.

Article source Author: Jeff Hammerberg Read More!

Home Mortgage Loan : Tips on Getting the Best Package Revealed

Before you pick your lender and home mortgage loan, try to make further check on some important aspects of the loan, such as finance costs, interest rates and lenders. This move assures your obtaining the best mortgage loan in the end. If you have a good credit rating, preferably 680 or even much higher, you have a wealth of home mortgage loan options. You can have the privilege of selecting the loan term of your liking, but then first you have to make sure you choose the best home mortgage loan package. How do we do this? By focusing on finance costs, loan terms and lending companies. Finance Costs The most competitive in the mortgage market is the general loans which includes both the fixed rate and adjustable rate mortgage. Most competitive loans only mean having the lowest interests. Add some twenty percent down payment and you have lenders gravitating all over you. Fixed-rate home mortgage loan somewhat offers security because of its flat rate of interest. This means you will pay with the same rate during the entire term of your loan. You can also opt to lock in when times do happen to have low rates. An adjustable rate home mortgage loan on the other hand offers lower rates. However, this comes with the risk that they might increase with the coming years. One advantage of ARM is that home buyers who don’t plan to stay in the property for the long term can actually help in you saving significant amount of dollars in interests. Lender Conventional lending companies offer competent financing, even if your need is on an unconventional loan. They can actually process subprime mortgages. They can likewise find an underwriter for you, which will slightly add to your home mortgage loan rates. Or perhaps you still want to work thoroughly on your loan options. You can start by making a list of all interest rate quotes on a loan amount. With this method, you will find out which lender gives the best offer. You must also focus on the fees; this ensures closing costs do not offset interest savings. After selecting a lender, you can now request for a bid. The lender will then check on your credit rating and provide you will real numbers. This is when the lending institution will actually look at your credit history and give you real numbers. Now it is up to you if you are agreeable to the terms, otherwise your next move is to look for another prospective lender. Loan Terms The shorter the term of you home mortgage loan, the less amount that you will have to pay in charges. However, you monthly payments will have higher amount, you term being short in duration. The most commonly applied for mortgage loan lasts for 30 years; however, you have an option of 25, 20, 15 or even 10 year mortgage loan. You have to base your term on your capacity to pay every month.

Article source Author: Julian Lim Read More!

Act to Save Your Home

You have got to ACT to save your home if you are facing foreclosure.
1. Ask questions
2. Consider Your Options
3. Take action

According to the New York Times, 1 in 11 mortgage holders face loan problems. Foreclosure has increased 93% over the last year and there is a projected increase of 2 million more in 2008. If you want to save your home you must ACT NOW!

Ask questions. Do not avoid your mortgage lender when you face a crisis. Most people are afraid to contact their mortgage lenders for fear they will lose their homes quicker. With our economic crisis in America and with our financial institutions facing a multi-billion dollar bailout, the last thing your lender wants you to do is to go into foreclosure or face bankruptcy. Get on the phone and ASK!

Consider your options. There are several options that can help you to save your home. Your home is worth saving. There are memories there that you love to rehearse when you enter a room or celebrate holidays. You don't want your last memory to be that of foreclosure. In your research, look for key words like loan modification, forbearance agreement or contract. Find out what they mean before you ask so you can make wise decisions regarding what is best for you and your family.

Take action. Do not delay. Pretending the problem does not exist will not make it go away. Time can be your enemy if you delay and your savior if you act quickly before it is too late to salvage your credit or to save the place that holds your life memories...your home.

Once again, the formula is to call you mortgage lender and ask questions; be open to consider your options; and do not delay to take action. You can save your home if you act now.

Article source Author: Jim Pappas Read More!