In those early years of existence, subprime mortgage loans helped with setbacks in life. But eventually, the short-term mortgage solution trapped homeowners. Borrowers snared in the high-priced syndrome went from one subprime mortgage to another in an effort to afford their homes.
Those without a long-term plan couldn't break away from subprime lending into traditional financing. Perhaps this story sounds familiar.
Subprime loans fulfilled an important role in increasing homeownership. Before subprime lending, the opportunity to own a home skipped past many Americans.
Whether it was bad credit, no money down, low cash flow, or unexpected medical bills, many homeowners simply couldn't qualify for traditional financing. They needed subprime mortgage lending.
Natasha felt trapped by her ex-husband's bad credit.
Fred and Josie were discouraged because their student loans left them without a downpayment.
Julio desperately needed cash to strengthen business during the oil crisis.
Why did Ben Bernanke support subprime loans?
Although subprime loans helped many people in the short term, homeowners were left without a long-term solution. But you're in luck today. Go to the next page to learn a Powerful Cure to Subprime Lending.
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