The Top 10 Reasons Mortgage Companies Do Not Want You To Foreclose
1. A mortgage company is in the business of making loans not being a property manager. All that they like to do is make money by selling mortgage notes to other institutions and making quick cash or by holding onto the note and collecting the interest.
2. If a borrower misses 4 payments in a row the lender has the option to start foreclosure proceedings on the home. It is in the contract you signed with them and they are only doing what the contract says.
3. After you have missed 4 payments the bank holding the mortgage note has not received 4 months of interest on the principle balance they lent you. As an example a loan at $200k at 6% interest would have a principle and interest payment of $!200 a month in which $1000 of that is strictly interest. It sucks seeing that number. So in the 4 months you
Click here to continue readingThe Top 10 Reasons You Should Never Get A Mortgage With A Mortgage Broker
1. First off mortgage brokers are not bad people. They are just trying to earn a living and have found a way to make a lot of money with very little personal risk. Mortgage brokers get a bad rap sometimes because of a few people that have misled clients. This happens in all industries but is in our faces more recently.
2. A mortgage broker is somebody who is a middle man between banks, credit unions, and investors. They work with so many companies because some have more programs than others or are willing to take a risk on a certain borrower.
3. Mortgage brokers do not lend you money. All that they do is the shopping for you and charge you a premium to do it.
4. If you currently are working with a mortgage broker or have in the past look for a line on the Good Faith Estimate(GFE) where it
Click here to continue readingThe Top 10 Reasons This Mortgage Mess Could Have Been Avoided
1. The money that banks and construction companies borrowed was the cheapest it had every been during the 2002-2005 years. This turned into a lot of cheap money floating around. If there is anything that we have learned is that “Cheap Ain’t Good, and Good Ain’t Cheap.”
2. With all of this cheap money going around mortgage companies could put otherwise unqualified home owners in homes that were twice the size of what they should own because the numbers worked out now. Never mind that their utility bills were going to make up the difference in what a mortgage payment would be.
3. Home builders were now building homes that were way too large for any normal family. Bigger is not always better. Just because you have a family of 4 does not mean you need a 4200 square foot home.
4. With interest rates so low every body turned into a real
Click here to continue readingThe Top Ten Reasons You Need To Get Your Mortgage From Your Local Bank Or Credit Union
1. Your local bank only deals with prime loans. They do not take the risk on risky mortgages mainly because they do not have the additional investors that larger financial institutions have.
2. Your local bank or credit union will more than likely hold onto the mortgage note rather than sell it in bundles like large mortgage companies.
3. Since your local bank or credit union holds onto the note and collects the interest off of the mortgage they are able to offer rates lower than a mortgage broker or correspondant lender. The rates are not that much lower but .125% -.25% over 30 years adds up.
4. If times become tough your local bank has a little bit more flexibility to possibly work with you in trying to redo loans. Whatever happens in the local community will affect them so its better to work something out than to have the bank go
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