Country Wide Home Loans - The Shocking Truth
It is apparent that the country is entering a period of financial instability, major negative financial factors affecting the economy.
These factors are; the increase in interest rates, depressed home values, higher credit card minimum payments, increasing gas prices and the recent Wall Street crisis.
The present credit crisis was fueled by country wide home loans being given to low-income families for over-valued homes. Now the storm has hit as many people find their home is worth less than their mortgage!
When these facts are combined with the crazy rise in the price of fuel, it is easy to imagine that a lot of families will be hit hard and probably be forced into foreclosure and eventually bankruptcy.
Most people are unaware of the clause in mortgage contracts giving the lenders the right to call in the country wide home loans if they are in arrears.
As for your credit card debts, the credit card companies have now doubled the minimum payments required which imposes a further burden to the borrower.
If you cannot meet your minimum payment the lenders will offer to consolidate your debt by taking your home equity as security. Should you accept this debt consolidation offer and are in default then the bank will be entitled to foreclose your home! We are seeing an all time high for foreclosures in Indianapolis, Atlanta and around the country.
As interest rates continue to go up and the credit crunch continues to bite, we will see a glut of foreclosures like what we saw in the 1980's or even worse. Most individuals thinking of taking their first time home loans should research before they plunge into taking a home loan at this time.
These factors are; the increase in interest rates, depressed home values, higher credit card minimum payments, increasing gas prices and the recent Wall Street crisis.
The present credit crisis was fueled by country wide home loans being given to low-income families for over-valued homes. Now the storm has hit as many people find their home is worth less than their mortgage!
When these facts are combined with the crazy rise in the price of fuel, it is easy to imagine that a lot of families will be hit hard and probably be forced into foreclosure and eventually bankruptcy.
Most people are unaware of the clause in mortgage contracts giving the lenders the right to call in the country wide home loans if they are in arrears.
As for your credit card debts, the credit card companies have now doubled the minimum payments required which imposes a further burden to the borrower.
If you cannot meet your minimum payment the lenders will offer to consolidate your debt by taking your home equity as security. Should you accept this debt consolidation offer and are in default then the bank will be entitled to foreclose your home! We are seeing an all time high for foreclosures in Indianapolis, Atlanta and around the country.
As interest rates continue to go up and the credit crunch continues to bite, we will see a glut of foreclosures like what we saw in the 1980's or even worse. Most individuals thinking of taking their first time home loans should research before they plunge into taking a home loan at this time.
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ARM Loans
The credit card companies often use these so called 'consumer credit counseling' to assist individuals to avoid bankruptcy. However it has been known that some of these non profit organizations have at heart the interest of the lenders as they are funded by them.
Finally the banks have been encouraging individuals to take the ARM loans. These adjustable rate mortgages were great when the interest rate were guaranteed to remain constant. In this age when banks are going out of business it is not possible to take an Arm loan and expect the interest will not go up.
For the time being if you cannot afford the monthly repayments for a loan then shelve the idea of getting country wide home loans until the mortgage crisis eases off or your income goes up.
Finally the banks have been encouraging individuals to take the ARM loans. These adjustable rate mortgages were great when the interest rate were guaranteed to remain constant. In this age when banks are going out of business it is not possible to take an Arm loan and expect the interest will not go up.
For the time being if you cannot afford the monthly repayments for a loan then shelve the idea of getting country wide home loans until the mortgage crisis eases off or your income goes up.
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Online Refinance for FHA Home Loan Programs
Today's homeowners who are looking to refinance have a tool that many didn't have ten years ago; this of course is the internet and applying for a refinance fha home loan programs online can offer some great benefits.
What this process has enabled, according to finance specialists, is to hand more control over to the homeowner who has in the past felt as if he were being controlled.
Nowadays, the homeowner is in full control and any questions they have can be answered form a large number of areas until they have all the information they need without relying on the answers of the lender.
As our lives get busier, we seem to have less time to see people personally and carry out this type of task face to face which was commonplace not that many years ago.
Being able to apply online affords homeowners the opportunity to do the paperwork from home, send it in and then waiting until the final part of the process to actually visit the lender in person to conclude the refinancing fha home loan.
More and more now, even this last step is becoming redundant as many companies allow the completion of the refinancing application forms online and a visit to the mortgage lender is not necessary.
What this process has enabled, according to finance specialists, is to hand more control over to the homeowner who has in the past felt as if he were being controlled.
Nowadays, the homeowner is in full control and any questions they have can be answered form a large number of areas until they have all the information they need without relying on the answers of the lender.
As our lives get busier, we seem to have less time to see people personally and carry out this type of task face to face which was commonplace not that many years ago.
Being able to apply online affords homeowners the opportunity to do the paperwork from home, send it in and then waiting until the final part of the process to actually visit the lender in person to conclude the refinancing fha home loan.
More and more now, even this last step is becoming redundant as many companies allow the completion of the refinancing application forms online and a visit to the mortgage lender is not necessary.
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- TheOptionClub TheOptionClub Dec 3, 2008 @ 8:46 am
- These are certainly tough times and there is little doubt that Countrywide was a key player in bringing this about.
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- errand25 errand25 Dec 2, 2008 @ 7:07 pm
- This housing loan is the start to all these troubles then again, it is also these loans that float the economy to current status, so I guess it is auto correcting now. Great lens with deep insights.
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- Nkeno Nkeno Dec 2, 2008 @ 1:47 pm
- Although the global financial crisis continues to grow, it is, however, a relief to see a drop in the price of crude oil.
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- yojspew yojspew Dec 2, 2008 @ 8:32 am
- Thanks for the very informative and excellent lens! Hope to read more of your lens soon!
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- Sophie12 Sophie12 Oct 26, 2008 @ 10:10 am
- Interesting information. It is scary, the current state of the economy. I hope we pull out of it.
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- Lilly-n-Lloyd Lilly-n-Lloyd Oct 22, 2008 @ 3:05 am
- Lots of great information here. I didn't know that the credit card companies were doubling the minimum payments.
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- Debt_Man Debt_Man Oct 21, 2008 @ 12:42 pm
- I cannot believe the state the economy is in right now and country wide helped put it there
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- Yahoo-Web-Hosting Yahoo-Web-Hosting Oct 21, 2008 @ 11:26 am
- The housing crisis is scary. I dont think Washington is doing anything to help the homeowner stay in their house. Thats a real problem
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- shineystones shineystones Oct 21, 2008 @ 6:06 am
- Good information on what is turning into a very scary topic for a lot of people.
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- 718raul 718raul Oct 19, 2008 @ 10:14 am
- Not everyone reads the fine print but with the financial crisis situation with housing as well as credit card debts it appears we all need to be more cautious.
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