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Subprime Mortgage - A Unique RemedyA 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 TrueHi, 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.
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.
 Custom Search The Band-Aid Mortgage - A Short Term FixThe 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 FeatureThe 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 LendersIn 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 HomeownersIf 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. Go ahead and bookmark this site. This way you can easily return to review tips on getting your best mortgage rate. Discover Kate's Best Mortgage Rate Blog today. Keep up to date on what's new about mortgages and additional tips to unlocking the secret code of mortgage lending. Valuable Resource For My Home Buyers and HomeownersSBI - A Fresh And Innovative Way To Create More Income Don't Miss A Word Of ThisSubprime Loans...Solutions For U.S. Home Owners |
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