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Subprime Mortgage - A Unique Remedy

A subprime mortgage is a short-term fix. You are invited to discover the long-term plan every home owner needs.

Subprime Mortgage Intended To Be A Dream Come True

Hi, my name is Kate Ford. I'm a recently retired mortgage broker. Over the past 20 years, I helped many people who lost hope of owning a home because they couldn't meet traditional mortgage guidelines. I saw clients, friends and neighbors who wished for homeownership become home owners.

Millions of home owners with special circumstances were assisted by subprime home loans.

  • First time home buyers
  • New on the job
  • Limited credit history
  • Bad credit due to circumstances beyond control
  • Little savings
  • No money down
  • Under the stress of catastrophic medical bills

Natasha dreamed of buying a home. But her husband walked out when their baby was 6 months old. Paying off her ex-husband's debt exhausted her savings. Even worse, he'd borrowed using Natasha's name. Her once perfect credit report reflected only his bad credit record. A subprime mortgage helped Natasha purchase a home for her baby.

Fred and Josie were young professionals who wanted more than an apartment. As recent college graduates, they had great jobs but no money down. With combined incomes, $1700 a month for their apartment was a snap. But they wanted to be home owners, especially before starting a family. Due to a subprime mortgage, Fred and Josie bought a home with no down payment.

The rising cost of gasoline was affecting Julio's trucking business. When his transport truck broke down, he needed cash quickly to fix his big-rig. Because he was self-employed, debt consolidation loans were too expensive. Refinancing with a subprime mortgage preserved his future.

Betty anticipated a workman's comp settlement in two years from Jack's accident. But his doctors wouldn't wait that long for payment. She felt hopeless when their health insurance passed on a $65,000 co-payment. How would Betty manage her husband's surgical bills and still keep their home where they had raised their children? A subprime mortgage helped her stop mortgage foreclosure.


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The Band-Aid Mortgage - A Short Term Fix

The subprime mortgage was intended to be temporary. That's why I called it the Band-Aid Mortgage. It was a short-term remedy of the mortgage industry for people with no money down or bad credit. But to people previously denied mortgage credit, a subprime mortgage seemed like a dream come true.

Although many borrowers were helped with subprime home loans, few received a 30 year fixed rate mortgage. Most didn't plan for soaring payments in 2 to 3 years. Left without a long-term solution, home owners felt helpless when their adjustable rate mortgage skyrocketed.

Prepayment Penalty - Riskiest Feature

The riskiest feature of subprime lending was the prepayment penalty. Lenders imposed prepayment penalty periods up to 5 years. This complicated the home owner's plight when their payments increased. If they refinanced or sold a home, thousands of dollars due to the prepayment penalty drained any equity which home owners had been lucky enough to gain.

Then real estate values began to decline. It seemed the most recent housing bubble was drawing to a close. Subprime lenders showed signs of cold feet. Liberal mortgage guidelines evaporated almost overnight. Lenders became reluctant to refinance anyone with this type of mortgage.

Fed Chairman Ben S. Bernanke On Subprime Lenders

In the spring of 2007, Ben S. Bernanke of the Federal Reserve Board cautioned don't throw out the proverbial baby with the bathwater.

"We at the Federal Reserve will do all that we can to prevent fraud and abusive lending and to ensure that lenders employ sound underwriting practices and make effective disclosures to consumers. At the same time, we must be careful not to inadvertently suppress responsible lending or eliminate refinancing opportunities for subprime borrowers. Together with other regulators and the Congress, our success in balancing these objectives will have significant implications for the financial well-being, access to credit, and opportunities for homeownership of many of our fellow citizens." -- Ben S. Bernanke

In spite of Bernanke's announcement, subprime lending continued to decline making mortgage refinancing even more difficult for subprime mortgage borrowers.

Lasting Solution For Homeowners

If this sounds bleak, don't get discouraged. Take heart! You're in luck because I am about to share how I helped my clients develop a lasting solution to subprime mortgages.

Don't delay! Follow my plan, the Powerful Cure To Subprime Mortgages. You are on your way to discovering a great long-term solution every homeowner needs.

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Valuable Resource For My Home Buyers and Homeowners

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Don't Miss A Word Of This
More Unique Mortgage Tips From Kate Ford

Subprime Loans...Solutions For U.S. Home Owners
Subprime mortgage loans helped with setbacks in life. For a long-term plan, discover my powerful cure for subprime syndrome.

Adjustable Rate Mortgage...How To Avoid Surprises
Adjustable rate mortgage...Imagine what it would be like if you could plan for changes to your mortgage payments.

Prevent Foreclosure...9 Simple Steps To Save Your Home
Prevent foreclosure! When adversity strikes, what should you do? You can save your home.

Good News, The Bank Does Not Want To Own Your House
Act now! Stop mortgage foreclosure. The more you know the less you feel the fear. With a little knowledge, you can turn this predicament around.

Avoid Foreclosure - Save Your Home...Save Your Life
Learn why foreclosure is costly to your life. It will affect more than losing your home.

10 Powerful Foreclosure Help Alternatives
Don't wait...Foreclosure help is here now. Learn the 10 alternatives to mortgage foreclosure.

How To Stop Foreclosure Now
Stop foreclosure now! Don't walk away. Instead, get this free report explaining how you can negotiate a better deal with your mortgage lender.

HOME TO Best Mortgage Rate
Enter the secret world of mortgage lending. Kate unlocks the code to getting your best mortgage rate. Uncover essential keys to low mortgage payments.

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