Are You Finding It Difficult To Obtain A Mortgage?
Many people are starting to ask why they are unable to obtain a mortgage; it is not just those who have an adverse credit history who are being affected. What are the reasons behind the financial institutions relutance to lend money?
Now I am not a mortgage adviser I actually help people to increase confidence and I also help businesses with cost reduction as well as working on a project about training for foster carers.
Going back to the previous question; well it is all down to the now infamous credit crunch. These banks and building societies do not have the confidence or capability to start lending out buckets full of cash. Despite the governments of the UK and USA slashing interest rates the market is showing no signs of picking up. It is as if there is some kind of stalemate taking place. Despite lower interest rates the public at large have been amazed and angered at the fact that some mortgage lenders have not passed on the reductions.
For the average man in the street this seems rather unfair. How often does a lender keep their rates unchanged when the Bank of England increases interest rates? Never is the answer, they are very efficient at increasing their rates. In my opinion there should be a rule which states that they have to pass the interest rate reductions on to their customers.
Governments around the world are trying to find a solution to this stalemate; they need to find a way to get the whole lending business moving again. For now people will just have to make do with that they can get, hardly an ideal situation, but that’s just the way it is.
I have read a report in my local newspaper where a prominent financial specialist predicted that house prices were likely to fall further. I personally believe that the fundamentals are fine but that the credit crunch and the affect that it is having is making it virtually impossible to buy and sell houses. There is likely to be some more bad news to come but within a couple of years the housing market will start to boom as people start to be able to borrow money again.
One of the biggest foreclosure mistake
More tips from Alex Speak: One of the biggest mistakes you can make after getting served with foreclosure papers is to do nothing, figuring you’ll ‘just let the house go’. So not only will you lose your home, but your bank will probably get a deficiency judgment against you; that is, a judgment awarding the bank money for the difference between what you owe on the loan, and what the house sells for after foreclosure.
Since you may owe more than your house is currently worth, you’re looking at a big judgment against you. And, in many states, deficiency judgments are good for twenty years which means that the bank’s going to make your life miserable for a long time – taking money from your bank accounts, grabbing income tax refunds, and dipping into assets that you might accumulate.
What should you do? Either hire a lawyer, or file an answer yourself. (a ‘hardship letter’ isn’t the same as an ‘answer’!) In answering a complaint, many lawyers ‘admit that the borrower (you) own the property, but deny all other allegations of the complaint’. In their answer, lawyers also typically raise certain defenses, such as, since the original note has been lost, and the plaintiff (the company suing you) doesn’t have a complete copy of the original note, the plaintiff cannot maintain the foreclosure action.
For adjustable rate mortgages that have interest-only payment periods, and/or the option of making a variety of payments such as a minimum payment, interest only, or interest and principal, and/or have a prepayment penalty, many lawyers say in their answer that the loan violated state unfair and deceptive trade practices laws because the originating lender didn’t explain to the borrower that negative amortization and payment shock would result from the structure of the loan.
Those same lawyers will also file a written request for the court to refer the case to mediation. The advantage of mediation is that you get an opportunity to sit down with a representative from the lender who has the authority to settle the case without a foreclosure. Before going to mediation, you should know exactly which solutions are available to you. Do your homework. To find the best solution for you, make sure you research all of the options.