Out in the mortgage marketplace we definitely have a problem with the sub-prime mortgage market. Presently and on the near horizon, the projection of home foreclosures is growing and will probably continue to grow. This is not a good thing for anyone! Not the home owner! Not the Mortgage Lender! And not the Insurance Company that owns the sub-prime mortgage back traunch!
Mortgage lenders definitely do not what to take over your home due to the non-payment of your mortgage. Why! They are not in the business of owning real-estate and definitely do not want to own any real-estate in a flat to down market. Therefore, mortgage lenders want you to call them, so they can help you reorganize you current loan or get you a new one that will allow you to continue to make payments on your home.
Lenders are motivated to help you in a marketplace sure as this. The banks are putting pressure on them to make sure that the mortgage owner will have every opportunity to reorganize their loan or get a new one flushed out.
Homeowners need to seek a lower rate and/or switch to an interest only loan for the near term. They have plenty of opportunity for new loan terms in the mortgage market-place, just make sure that the new loan does not increase the amount you owe with each new payment.
More on this tomorrow.
Best,
James Nexus
CompareYourLoans Contributing Editor
