Archive for July, 2007
How to Clean Up The Mortgage Industry and Satisfy Consumers With One RESPA Amendment
July 18th, 2007 Categories: Mortgage News
What is the first question every consumer asks when they call a mortgage entity?
What is your interest rate for a _________? (Pick a program).
What is the second question every consumer asks when they call a mortgage entity?
How much do you charge?
First, these are the two worst questions a consumer can ask because it demonstrates a high level of ignorance to whoever the broker/banker is on the other end of the line. You pay for what you don’t know in this world, asking these types of questions to the wrong mortgage pro is like waving a steak in front of a hungry dog…you can hear the saliva hit the floor.
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How to Beat Foreclosure
July 17th, 2007 Categories: Mortgage News
With payment defaults and resulting foreclosures, the mainstream news will have you believe the mortgage industry is somewhere between a state of major reform and the tipping point of colossal failure. Realistically it’s somewhere in between, but that’s not a very newsworthy view.
Markets are cyclical in nature. The stock market demonstrates this with such redundancy; the terms Bear and Bull are associated with buyer or seller purchasing conditions rather than animals, on Wall Street.
The mortgage industry experienced unprecedented growth from 2000-2005 as interest rates dipped to historical lows and the number of new program types swelled, which reduced qualification standards, which afforded home ownership to a huge new pool of people. More money in the market caused more demand which caused higher home values or prices…nonetheless everyone could run with Bulls. Today, many of those newly entitled borrowers are fighting the Bears.
Many of the people clamoring that this down cycle is solely due to the predatory nature of the mortgage industry also probably keep news of Paris Hilton’s latest dealings in their feed readers. It makes great front page news but the predatory aspect of the mortgage industry has been around far longer than the past five years. Listen to me, The XBroker, playing down the predatory nature of the mortgage beasts…whoda thunk it.
In any case, the unfortunate action of foreclosure is being levied against a record number of consumers for a myriad of reasons, mainly the sharp increase in monthly payment requirements due to short term ARM’s and the overall relative ignorance of consumers when it comes to personal financial planning…and you can sprinkle on some grievous mortgage professional conduct.
Regardless of why one is facing foreclosure, its water under the bridge at that point…you can’t change the past but you can address the future. So, what can one do that is facing foreclosure?
Fight it<sp