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 True 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. 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. 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! 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 HomeownersMortgage 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. Getting The Help You Need For Saving Your HomeAre you behind on your payments now? Have you received a notice of default? Don't give up. With a little knowledge, you can Stop Mortgage Foreclosure. Foreclosure Help is available. Act now if you think you are going to be late on a mortgage payment. If you anticipate being late on a mortgage payment, here's help for locating your lender to Stop Foreclosure Now. By understanding your Adjustable Rate Mortgage, you can anticipate interest rate adjustments and plan for increases in your mortgage payments. When promises to Sell Your House seem too good to be true, remember this fact. It is possible to sell a house and remain legally obligated on the mortgage. Find out more here. A limited offer, Mortgage Debt Relief provided help for homeowners subject to additional income taxes. Members of the Hope Now alliance proposed 3 ways to help American homeowners avoid foreclosure. Here's how to explain to your lender that you are trying to Prevent Foreclosure. The first step to stopping Foreclosure is understanding its impact on your life. Save Your Home! Save Your Life! How to take advantage of the current mortgage crisis to Stop Foreclosure. Learn from Donald Trump about negotiating a better deal. FHA Secure Revised FAQs alerted homeowners their eligibility was not dependent on late payments. Subprime Mortgage Loans fulfilled an important role in America by increasing homeownership but eventually they created a trap for home owners. You are invited to discover why every homeowner with a Subprime Mortgage needs a long term plan. Subprime Mortgages - Here is a long term plan I used to help homeowners transition to traditional mortgage financing. Can I do a Mortgage Loan Modification myself?" The answer is yes. But find out the first question you really should be asking. Ask Kate About Loan Modification - Ask a question, get an answer from Kate. Loan Modification Ask and Answer - A collection of questions regarding loan modification, Home Affordable Programs, HARP and HAMP, each with a individual answer from Kate. Return to Get-Your-Best-Mortgage-Rate home page from Mortgage Loan Modification, Subprime Mortgage and Foreclosure Help Collection Didn't find what you're looking for? Here's more help!Tip: Use this toolbar to search this site or Ask Kate for answers.  Custom Search
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