Subprime Mortgage - 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 and 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 Helped By Subprime Mortgage

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

Meet Natasha

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.

Meet Fred and Josie

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.

Meet Julio

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.

Meet Betty

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.

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! If you follow my plan, The Powerful Cure To Subprime Mortgages, you are on your way to discovering a great long-term solution every homeowner needs.

Valuable Resources For Homeowners

Mortgage Loan Modification - Learn how to save your home and save thousands of dollars with Home Loan Modification.

SBI - A Fresh And Innovative Way To Create More Income - Kate's personal story of building this website

You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with the latest additions to this website, interest rate updates and a fresh approach to real estate and mortgages.

Assistance A Click Away

Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.

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