Re: Mortgage Mayhem
Alarmist –noun 1.a person who tends to raise alarms, esp. without sufficient reason, as by exaggerating dangers or prophesying calamities.
If we were at the peak of a bubble, median sales prices would have been increasing until today. That's not the case. There's already been a slight downturn in values nationally w/some moderate regional downward adjustments.
I appreciate your concern, but it's a bit misguided. I personally know a number of mortgage brokers who get paid a base salary. And I'm sure we've all seen those Help-U-Sell realtor signs -- they work for a flat fee.
Just as in any occupation, there are good and bad apples. Most people wouldn't suggest that we don't trust the Chinese because they're trying to kill us with lead paint and tainted toothpaste. And so we should judge each person as an individual.
First of all, it's not cool to demand a change to your mortgage terms when you've signed documents stating you understood what you were getting into and that you agree to repay the lender according to the stated terms. At least ask nicely. And bankruptcy should be the last resort for homeowners, especially considering today's tightened guidelines and the potential mortal blow to your credit scores. The FHASecure program is designed to help homeowners avoid foreclosure, if they have some (at least 2.25%) equity. It's better to look into short selling your home if you're upside down. Consult with a financial adviser (not the lender) to see if it's feasible.
You should consult with your realtor and escrow officer to find out what comparable homes in your neighborhood have recently sold for. The days of getting an offer with two backups in the first week on market are over. You could lose out on thousands of dollars by prematurely cutting your asking price. And not everyone can afford to absorb three years of negative cash flow on a rental property if rents are soft.
Foreclosures will get a significant bump in the next few years from market fallout. If you're thinking to pick up an investment property at auction, waiting = losing.
Going from an ARM to an ARM doesn't make any sense in today's market, except in few extreme scenarios. The spread between ARM and fixed-rate mortgage (FRM) rates has never been smaller. Get a FRM if you're refinancing.
Finally something I can agree with.
Neither Americas Watchdog nor National Mortgage Complaint Center is listed on the national BBB website. And both the aforementioned companies and American Interbanc all seem to rely heavily on PR pieces (direct and fed to media outlets) to pat themselves on their backs. And for a lender so highly praised by Americas Watchdog, independent praise by satisfied clients is noticeably absent on the Google-scape and here on their BBB page.
It doesn't take much imagination to hypothesize that perhaps the three companies are heads sprouting from the same corporate beast. Examination of mortgage documents? They could be passing client and loan info to American Interbanc in an attempt to cherrypick business. Direct lenders have been accused of similar practices in the past.
Another pinch of truth here.
OK. So now they're saying mortgage brokers can be better to deal with than direct lenders or banks? No argument here.
Most anyone who's been renting the same place for at least five years in an area with increasing population could expect to pay 50%-100% more on a mortgage for a comparable place now -- unless they've been getting hit with regular rent increases. The warning might hold water in some place like Buffalo, NY though.
Beware! The United States is at the peak of the worst national housing bubble in history. It's only begun. There will be blood in the streets.
If we were at the peak of a bubble, median sales prices would have been increasing until today. That's not the case. There's already been a slight downturn in values nationally w/some moderate regional downward adjustments.
To protect yourself;
1) Do not trust Mortgage Brokers
2) Do not trust Real Estate Agents.
They are both motivated by commission only.
1) Do not trust Mortgage Brokers
2) Do not trust Real Estate Agents.
They are both motivated by commission only.
Just as in any occupation, there are good and bad apples. Most people wouldn't suggest that we don't trust the Chinese because they're trying to kill us with lead paint and tainted toothpaste. And so we should judge each person as an individual.
1. If you currently have a "Pay Option Adjustable Rate Mortgage", get out of it if you can afford to. If you can't afford to get out, Americas Watchdog highly recommends that you contact your lender & demand a fixed rate product. If this does not work, the homeowner might want to consult with a bankruptcy attorney.
2. If a homeowner is attempting to sell a home in many major US markets they will either have to lower their asking price, or they might be better off renting the home for at least three years.
3. If you are a buyer, wait if you can.
In the opinion of Americas Watchdog, 2008 will bring more real estate price reductions in the southwest, southeast and northeast. In some markets like California, reductions could be 15% or more.
In the opinion of Americas Watchdog, 2008 will bring more real estate price reductions in the southwest, southeast and northeast. In some markets like California, reductions could be 15% or more.
4. If you are an existing homeowner with adjustable rate mortgage, refinance your mortgage into either a 30 year fixed rate mortgage, or get a five or seven year adjustable rate mortgage and stay put. If an existing homeowner has a good mortgage product---say put.
5. Individuals who are Veterans, homeowners/consumers who have average to even poor credit or first time homeowners, should strongly consider getting a FHA or VA Mortgage. FHA & VA mortgage products might be the absolute best mortgage products available in today's mortgage arena.
6. If a homeowner or consumer is looking for a A+ honest mortgage lender, Americas Watchdog has endorsed American Interbanc as the best priced conventional mortgage lender doing business in the US for individuals with good to excellent credit ("the mortgage lender bankers go to"). American Interbanc's web site is at Http://americaninterbanc.com and their toll free number is 1-800-724-0004.
7. Do not finance or refinance your home without the National Mortgage Complaint Center doing a thorough examination of your mortgage documents. On average the National Mortgage Complaint Center saves consumers $500 to $1000 on their mortgage fees. The cost of this inspection service is $65, or for a full mortgage review to see if a consumer was cheated the cost is $150. The National Mortgage Complaint Centers Web Site is located at Http://NationalMortgageComplaintCenter.Com & their phone number is 1-866-714-6466.
7. Do not finance or refinance your home without the National Mortgage Complaint Center doing a thorough examination of your mortgage documents. On average the National Mortgage Complaint Center saves consumers $500 to $1000 on their mortgage fees. The cost of this inspection service is $65, or for a full mortgage review to see if a consumer was cheated the cost is $150. The National Mortgage Complaint Centers Web Site is located at Http://NationalMortgageComplaintCenter.Com & their phone number is 1-866-714-6466.
It doesn't take much imagination to hypothesize that perhaps the three companies are heads sprouting from the same corporate beast. Examination of mortgage documents? They could be passing client and loan info to American Interbanc in an attempt to cherrypick business. Direct lenders have been accused of similar practices in the past.
8. Consumers should not fall for too good to be true "no cost" mortgages or Internet solicitations.
9. Consumers & homeowners should demand honest answers from elected officials. Americas Watchdog for years has been advocating that banks and mortgage bankers disclose the same fees that mortgage brokers must disclose. Specifically "yield spread premiums". A "yield spread premium" is a kick back mortgage lenders get for increasing a consumers interest rate/monthly mortgage payment. Mortgage Brokers have to disclose these fees, banks or mortgage bankers do not.

BEWARE: If it is cheaper to rent than to buy with a 20% downpayment and a FIXED 30 year rate, you are being screwed.
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