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.
"I couldn't buy a home without a downpayment. So I needed a subprime mortgage. But 2 years later, my adjustable rate mortgage went up and my house value went down.
My only option was to refinance with another subprime mortgage. Now my new house payment is so high I'm facing foreclosure."
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?
The expansion of subprime lending has made homeownership possible for households that in the past might not have qualified for a mortgage and has thereby contributed to the rise in the homeownership rate since the mid-1990s...
Not only the new homeowners but also their communities have benefited from these trends. - Ben S. Bernanke, Federal Reserve Board Chairman
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.
Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
Please tell your friends about Subprime Mortgage Loans - Solutions for Trapped U.S. Homeowners. I hope you'll come back and visit often.
Aug 11, 16 10:49 AM
Aug 11, 16 10:18 AM