I have friends who bought a home in 2006 for 5,000. They obtained conventional financing with 10% down and were making their mortgage payments. The subsequent real estate meltdown from zero-down-pay-what-you-want loans destroyed the value of their property. Their lender refused to even discuss loan modification. They walked away figuring their credit would recover faster than the real estate market. Their old house is now on the market for ,000. They would have been happy with a mortgage at DOUBLE that valuation with no interruption in revenue or foreclosure costs to the lender. It makes no sense to me. Any insider input?
There’s more to it than personal responsibility. Banks and mortgage brokers hawked unjustified loans to naive buyers. Other buyers took advantage of an opportunity to buy property they knew they couldn’t afford. Countrywide CEO Angelo Mozillo made millions building the real estate house of cards and walked away when it collapsed. This doesn’t change the basic question.
Jeffrey- Thanks for your response. When my friends contacted their lender they were told they needed to miss three payments before the lender (Countrywide) would talk to them. Their response, "Okay, if that’s what you want." It made no difference. They missed six payments. Still no difference. They consulted a real estate attorney and walked away. They now rent a nice home for 0/month less than their old mortgage payment and invest the difference. In seven years when their credit recovers they’ll have close to K-0K to get back into the market.
Posts Tagged ‘mortgage brokers’
Why aren’t lenders willing to modify mortgage loans?
Saturday, January 16th, 2010Can a mortgage on the house be payed off by home equity loan?
Sunday, January 10th, 2010Is it possible to pay off the mortgage with an home equity loan if the APR is less than what I am paying right now? I understand that if I refinance, there are closing costs and for home equity loan, there are none, am I correct? What are the advantages and disadvantages of doing that? Please advice.
Questions about home equity options?
Monday, December 14th, 2009My wife and I have a home that have been appraised at 0,000. and we have an outstanding mortgage of 2,000 (3 yr. closed term 5.5%). We would like to move next summer into another house due to a new development in our neighbourhood. We have an outstanding debt of ,000 which consists of a line of credit at 7.9%, and a credit card at 9.9%.
My question is, should I refinance with another bank at their offered rate of 4.25% (open variable), and move the line of credit over to theirs (4.75%), and use the equity in the house to pay off the debt; or should I wait until next summer and use the proceeds from the house sale to pay off the debt?
What must be a debt to income ratio to qualify for home equity loan? ?
Wednesday, November 11th, 2009What is a debt to income ratio to qualify for Home Equity Loan / Home Equity line of credit.
What if I go to mortgage brokers who have access to "B" type lenders at higher rates?
Thanks guys!
Refinance, mortgage question very confused?
Tuesday, November 10th, 2009I took out a 70k HELOC 1.5 years ago, adding my 1st i owe 205,000. My intrest rate on my 1st is "ARM’ 10% and 2nd 12%. These are killing my payments. I went to try to refinance my credit is 670, but they are telling me my property is valued at 185. if i would come up with 20k they tell me i could save a huge chunk of money. My home was actually appraised at 220 when i took out the HELOC 1.5 years ago. They used a computer to figure it out not a actual appraiser. After doing some reasearch homes sold for 184,000 at that time. I live in a townhome communtiy. I need some help tired of explain this to banks.
Is this a good time to change 2nd mortgage from fixed rate of 8.9% to adjustable rate mortgage?
Thursday, October 22nd, 2009My 2nd mortgage can be payoff in 8 years.
I have a HELOC at 8.5% fixed. Should I switch this?
Thursday, October 22nd, 2009I have a HELOC at 8.5% fixed and was thinking of swtching this to a 4% variable. I wanted to use the extra money I save and pay the principal down, but was concerned about the prime rate going up. Wells Fargo says I can switch back and forth, but when I switch back to a fixed, the rates may be better or worse for a fixed. Is this worth trying? I have to add .75% on to whatever the prime is to get my rate.
I brought my home 1yr ago, I want to refinance, my mortgage was setup with a 1st and 2nd mortgage?
Thursday, September 10th, 2009Total I brought the house for 87000 and I owe about 85000 total between the two mortgages. First mortgage has an itnerest rate of 9.5% and the 2nd is about 12%. Is this a good time to refinance. In total I am paying between 750-800 a month (not including taxes or homeowners insurance) should I refinance.
Related ‘mortgage brokers’ sites :
| Mortgage broker - Wikipedia, the free encyclopedia A mortgage broker acts as an intermediary who sells mortgage loans on behalf of individuals or businesses. ... Today in most developed mortgage markets (especially in Canada, ... en.wikipedia.org/wiki/ | |
| NAMB - Home Home Page for the National Association of Mortgage Brokers. www.namb.org | |
| Mortgage broker: Definition from Answers.com Mortgage Broker An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages www.answers.com/topic/ | |
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| Mortgage Broker - eHow.com Find info and videos including: Becoming a Mortgage Broker, What Is a Mortgage Broker?, Becoming a Commercial Mortgage Broker and much more. ... www.ehow.com/mortgage-broker | |
| Canada's "Elite Mortgage Team" - Mortgage Brokers Ottawa ... Let our mortgage brokers get you the best mortgage rates and mortgage loan interest rates. You'll also find tons of free information, expert advice and mortgage tools. www.mortgagebrokersottawa.com | |