Problems! Problems! run away ..... With all of the negative real estate news, why not, right? We have seen the so-called subrpime meltdown in the beginning of 2007. We have seen housing slumps continue for the middle of 2006, into 2007, and about to continue into 2008. This summer, we saw the jumbo market in regards to mortgages increase 1 1/2 percent in rate. And we basically saw most of the stated loan market disappear. Don't get me wrong, they can still be done, but they are much harder and more expensive than before. Lastly, we just saw changes that are starting to occur for even average to slightly above average borrowers in the conventional loan sector. Basically those with credit scores of 620 to 680 with less than 25% down. For more information on this, Lenn Harley breaks down the differences and why this will be even tougher for the average consumer to dissect and shop their mortgage properly. FANNIE AND FREDDIE REDEFINING THE MEANING OF "SUBPRIME" *** A must read ***
So, what is the solution? Why do we hear so many talking about the negativity and that there seems to be no light at the end of the tunnel. Even in Lenn's post and so many others, they are giving us facts of what is happening. Telling us the actual changes. This is great and very appreciative to so many. But why no solutions to these problems?
I don't have a magic wand. I can't pull a rabbit out of the hat. But why can't we do something about this? Sure, we have seen the government jump in there and offer a rate freeze on subprime adjustables. We have seen HUD offer the FHA Secure loan. These loan programs mentioned will help the very select few.
- President Bush's plan to freeze Sub-Prime Rates by : Ronald Miller
- New FHA Secure Program! by : Cecelia Marlow
- Will the HOPE NOW program really assist all who need it? by : Michael Sally
Problems of the future? Part of the problem is allowing loan officers the ability to sell mortgages that don't have the clients best interest. Many aren't equipped to make sound financial decisions on the consumers part. Now, I am not saying that the programs mentioned below are bad or evil. In any event, maybe 1 out of every 100 should even be in these types of programs. That is only 1 percent. But my main concern is that we have so many selling these types of loans based on a program and not on how they actually work or how money works in general. Just as the Pay Option Arms did.
Money Merge Accounts aka Mortgage Accelerator programs...... beware!!! by : Jeff Belonger
Mortgage Accelerator Programs? by Tony Howell
SOLUTIONS : Pay attention to the true professional that is honest with you and not just telling you what you want to hear. In todays market, you need to understand it and not just a bunch of promises. And seriously, don't discount FHA mortgages.
- Seven Tips to Ensure Success for Single Home Sellers! by : Kelly Turbeville
- Las Vegas Listing Inventory: Only Serious Sellers Need Apply! by : Renee Burrows
- Selling and Buying In A Down Market by : William J. Archambault, Jr
- Will Conventional loans be just like the Subprime mess? by : Jeff Belonger
- A Way to Help Conforming Limit Increase by : John Severino
- Pricing is Essential in this Market! by : Renee Burrows
Things to do if in trouble, before foreclosure happens to you. Don't WAIT :
- Alternatives to Foreclosure by : Mark Pandzich
- Foreclosure Tips -- How to avoid foreclosure..... by : Jeff Belonger
The truth and nothing but the truth ---- REALITY -- It's great to see the government jump in and offer fixes to our current problems, but read some of these to get a reality check. This is just my opinion, but there is a lot of truth spoken here.
- Bush's Bogus "Rate Freeze" Plan by : Scott Gormley A must read, telling you what is behind a mortgage. How it works and why these plans will have a hard time working.
- WHY THE RATE FREEZE PLAN WON'T WORK by Rich Sweum
- Arm Rate Freeze: Smoke and Mirrors? by : Kaye Thomas
- FHA Secure Loan -- A political move or just being helpful -- The Positives/Negatives by : Jeff Belonger
- The Truth About the Mortgage Market by : Jason Fontaine
- So What Did You Learn From The Bubble of 2007 Dorothy??? by Rich Sweum
ENDING : Hey, this song drove me crazy after it was out for 6 months, but this post should get you going in the right direction.
- Don't Worry Be Happy by : Ernie Cabrera
Summary : This post is just my opinion of over 15 years in the mortgage industry. Yes, there is a lot to read here. But if you read each link, taking the time, it might give you a better idea of what we are up against. My personal, professional, and business opinion is that we should let the market correct itself on its own. Yes, we can try and help with some programs. But it comes down to understanding and educating everyone; the buyer, seller, realtor, or loan officer in todays market. Don't take everything that the media says to be as gold, the absolute truth. Yes, this is a very tough market, but there are still solutions. Overall, let's leave these up to the professionals and not the government. If you want change, call your government officials. Let your voice be the power of the people and not what the gov't thinks sounds good to the general public.