It is reported that more and more homeowners, both sides of the Atlantic, are being burdened with negative equity. That is the unhappy situation when your outstanding mortgage exceeds the value of your house. It stifles the housing market, because unless they have to, people are reluctant to sell in a downturn.
Those with negative equity, who also have limited or nil savings, could not meet their outstanding mortgage loans if they were to sell their houses. This need not be a problem, because most people consider their house, and the mortgage secured against it, to be a medium to long-term investment. They believe that if they stay put, the current downturn will be over, and property prices will rise again. That has always been the case in the past, although there have been short-term hiccups.
Please Click Here to visit the Free Mortgage Advice Web Site.
This time round, the situation has been made worse by injudicious lending; to people that couldn't really afford to fund the mortgages they were granted. Unfortunately, one bad turn often follows another, and a period of unemployment can fast eat into savings, or worse still, maximize other debts. It's a bit of a chain reaction that can only intensify in the impending recession. What could be worse than losing your job at the same time as property prices are falling, but the price of oil, and seemingly everything else, is rising? It may seem like a bit of a recipe for disaster.
The majority who can survive the financial storm will be alright, and come out of it virtually unscathed. But what about the unfortunate minority who are out of work and finding it difficult to meet their mortgage repayments?
The best advice is to discuss your plight with your mortgage provider at the earliest opportunity. There are various ways they may be able to help you. They might agree to extend the mortgage repayment period, or allow interest only repayments for a time. They may even consider a repayment holiday, if they believe that your setback is only temporary, and there are signs that your circumstances will improve.
There are joint equity schemes whereby loan authorities buy a stake in the property, and repayments are proportionately reduced.
Tags:
mortgages-house prices-negative equity
mortgages-house prices-negative equity
Mortgage Bankers Heckled
Never in the field of buying houses, was so much, grabbed by so few, from so many, who were encouraged to borrow more than they could afford to repay!
It's not only in San Francisco that mortgage bankers have been booed by consumers who believe they have been let down. Irresponsible lending, has been used as an excuse for paying phenomenal bonuses, to bankers who did little more than create an unsustainable house price bubble. It is worse than the dot.com crash which hit people who knew that they were gambling, rather than people whose only aspiration was to own a home of their own.
Please Click Here to visit the Free Mortgage Advice Web Site.
The Gordon Gekko 'Greed is Good' syndrome was everywhere from get rich quick bankers, to buy to let investors who were led to believe they couldn't lose. Investment is a speculative proposition, which is just another way of saying that it is a gamble. The greater the risk the greater the return is a quoted maxim, which is why long shots in horse races, are at long odds, and rarely win. Gekko always won because the insider trading he was involved with controlled markets. By ignoring established banking practices, mortgage bankers have had a field day, but escaped with the spoils before the day of reckoning.
In horse racing, and other forms of gambling, the bookmaker usually wins, as opposed to recent banking ventures whereby bankers always won in the form of ridiculous bonuses. It's the sort of greed excess that allows Gekko type aspirations, to siphon proceeds off to the undeserving few! There are many to blame for the ensuing fiasco, whether they will ever be taken to account is another question!
Tags:
mortgage bankers heckled
mortgage bankers heckled
It's not only in San Francisco that mortgage bankers have been booed by consumers who believe they have been let down. Irresponsible lending, has been used as an excuse for paying phenomenal bonuses, to bankers who did little more than create an unsustainable house price bubble. It is worse than the dot.com crash which hit people who knew that they were gambling, rather than people whose only aspiration was to own a home of their own.
Please Click Here to visit the Free Mortgage Advice Web Site.
The Gordon Gekko 'Greed is Good' syndrome was everywhere from get rich quick bankers, to buy to let investors who were led to believe they couldn't lose. Investment is a speculative proposition, which is just another way of saying that it is a gamble. The greater the risk the greater the return is a quoted maxim, which is why long shots in horse races, are at long odds, and rarely win. Gekko always won because the insider trading he was involved with controlled markets. By ignoring established banking practices, mortgage bankers have had a field day, but escaped with the spoils before the day of reckoning.
In horse racing, and other forms of gambling, the bookmaker usually wins, as opposed to recent banking ventures whereby bankers always won in the form of ridiculous bonuses. It's the sort of greed excess that allows Gekko type aspirations, to siphon proceeds off to the undeserving few! There are many to blame for the ensuing fiasco, whether they will ever be taken to account is another question!
Tags:
mortgage bankers heckled
mortgage bankers heckled
Mortgages - Once Bitten Twice Shy!
Mortgages are still readily available in the US, but as might be expected, mortgage loan sources require full evidential documentation to support income statements. It may be a case of 'once bitten twice shy' because it is generally agreed that credit policy has been too relaxed, which largely contributed to the current crisis.
Not very long ago it would have been inconceivable to imagine mortgage giants, Fannie May and Freddie Mac, being taken over by the federal government. Equally it would be wrong for the government to proceed with policies that had created unprecedented problems. Therefore, it is unsurprising that a more cautious approach is being followed. In fact it is vital when taxpayers money is involved.
Please Click Here to visit the Free Mortgage Advice Web Site.
When credit standards are tightened up fewer people qualify for mortgages, which does nothing to improve the market. It favors financial stability, with mortgages only approved for those who can best fund repayments. For such borrowers there are bargains to be had, but unfortunately at the expense of those who have become overextended.
There are reports that the government continues to support affordable housing, whilst recognizing the need for responsible lending. It's a difficult path because it was irresponsible lending that led to the present predicament. There is little doubt that the US, and the world at large, will recover from the financial storm, but in the short term, there will continue to be credit restrictions and other hardships to endure.
Tags:
mortgages harder to get
mortgages harder to get
Not very long ago it would have been inconceivable to imagine mortgage giants, Fannie May and Freddie Mac, being taken over by the federal government. Equally it would be wrong for the government to proceed with policies that had created unprecedented problems. Therefore, it is unsurprising that a more cautious approach is being followed. In fact it is vital when taxpayers money is involved.
Please Click Here to visit the Free Mortgage Advice Web Site.
When credit standards are tightened up fewer people qualify for mortgages, which does nothing to improve the market. It favors financial stability, with mortgages only approved for those who can best fund repayments. For such borrowers there are bargains to be had, but unfortunately at the expense of those who have become overextended.
There are reports that the government continues to support affordable housing, whilst recognizing the need for responsible lending. It's a difficult path because it was irresponsible lending that led to the present predicament. There is little doubt that the US, and the world at large, will recover from the financial storm, but in the short term, there will continue to be credit restrictions and other hardships to endure.
Tags:
mortgages harder to get
mortgages harder to get
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