Sub Prime Mortgage Refinancing Options [mortgageinsurance-101.blogspot.com]
Question by ~♠♥CJ♥♠~: Who do you feel is mainly at fault for the sub-prime mortgage meltdown, lenders or home buyers? Best answer for Who do you feel is mainly at fault for the sub-prime mortgage meltdown, lenders or home buyers?:
Answer by Wayne Z
Lenders. You can't blame someone for wanting to buy a house. However, you can blame the mortgage originators for getting mortgages for people they knew could afford them either in the short run or the long run.
Answer by v b
Builders, lender and buyers. Even when there wasn't outright fraud. Buyers for buying into the dream when they should have known better; the lenders and builders for thinking the housing boom was suddenly immune from normal business cycles. I would never buy a house if my ability to pay was based on my not only having my current job for the next 10 years, but on getting significant raises as well.
Answer by sniper
Some of both. As consumers we need to be more responsible of our earnings and live within our means. Institutions should cut the greed and trickery used to attract the vulnerable.
Answer by patrick
There are multiple people responsible, and not just lenders and buyers. Many mortgages are originated with mortgage brokers, and some of them were responsible for steering people into mortgages they didnt qualify for, or were excessive in their terms and penalties. Banks were lax, because they knew they could resell mortgages quickly, thanks to investment bankers which in turn knew they could turn a quick profit on high return mortgage packages (CMO's) because the investors mistakenly believd that they ere all "collateralized". There was some fraud no doubt. There was a lot of stupidity, and a lot of greed. When the forces of the market took over, there was no out. Wait until the next shoe to fall, which will be credit card debt. It will make the mortgage crisis look sane.
Answer by Landlord
The borrows are 100% responsible for their choices. The lenders only partially. Many had the idea that they may as well do it, the dishonest buyer would just go elsewhere for a loan they could not afford, the lender can not control their behavior. Any lenders who helped create false documents for people (I have heard of some doing this) should be in prison, right next to the slime ball borrowers.
Answer by Dizzy_Lizzy
I do feel like consumers should have done a better job of educating themselves, but since lenders really should be educating consumers about making smart financial choices I do think they share a larger portion of the blame. Not all consumers realized they were making stupid choices, but all of the lender involved knew they were making risky loans.
Answer by lonnie w
the home buyers are at fault. Buyers knew what they were getting themselves into. They knew the payments up front and told the lender they could make the payment. A lot of borrowers cash out refinacned their homes, pulled out all of their money and then let the home slip into foreclosure. They were wither really stupid of really smart. They also did not read thier loan docs.
www.howdini.com How to deal with subprime mortgage loans What to do if you have a subprime mortgage you can't handle? Default, walk away, sell at a loss? Here's everything you need to know from author and Fox Financial Correspondent, Gerri Willis. Keywords: subprime loans subprime mortgages...
mortgageinsurance-101.blogspot.com How to deal with subprime mortgage loans
That difference â€" and the fact that subprime auto loans didn't crash during the recession like subprime mortgages did â€" is helping to fuel a boom in investments ... Subprime Auto Loans Grow As Lenders Charge A Premium
A bad credit rating may get a homeowner turned down for a mortgage refinancing or modification. Often times, homeowners who have bad credit do not even know where to start when looking for a refinancing. However, typical mortgage lenders and banks do not always help homeowners with bad credit. This means that a homeowner who wants to get approved for a mortgage refinancing should look for the proper lender, especially if you have bad credit.
Mortgage Refinancing Options with Bad Credit
With mortgage interest rates rapidly declining, many homeowners are looking at getting a home loan modification or refinancing. Mortgage rates, just a few years ago, were 9% while the same loan today would come with a 5% interest rate. Homeowners who are able to reduce their interest rates by refinancing will see big savings every month on their home loan payment.
The money that is saved can help a homeowner improve their financial position.Mortgage refinancing, even for homeowners with a low credit score, can mean a big savings. Sub prime mortgage lenders are companies which deal specifically with homeowners who have bad credit. Also, a sub prime mortgage lender can usually offer you a lower interest rate than a traditional mortgage lender or bank could, which makes your refinancing more beneficial.
Finding the right Sub Prime Mortgage Lender
Homeowners have the luxury of being able to use the internet to research potential mortgage lenders, and mortgage refinancing options. Most mortgage lenders and banks will actually have forms which can be filled out online.
Although relevant information such as tax returns, pay stubs, bank statements, and other related information will still need to be supplied.Mortgage refinancing is easier to get than ever. Homeowners have a wide choice of mortgage lenders and banks which would love to have them as a customer. Take action now and get yourself into a lower monthly mortgage payment.
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