A Helping Hand Office Support Service – Our take on the Mortgage Crisis

With the housing market under extreme attack, more and more borrowers are finding themselves overwhelmed and stricken with the grief of losing their most prized asset – their homes. According to RealtyTrac, an information firm that tracks real estate, a recent analysis concluded that America has witnessed over 600,000 foreclosures in this year’s first quarter – from January to April. It’s been reported that well over 250,000 homes are in various stages of foreclosure with the numbers are still climbing and no end in sight.

Lenders are responsible for a portion of the problem

Here’s an excerpt from an article of how this all started:

Subprime lending was fueled by loans called option adjustable rate mortgages (ARMs). Here, borrowers had the option of paying minimum monthly fees. However, these minimum payments would not even cover the loan’s interest. This interest would be added to the principal mortgage, actually growing the loan month by month, and making it even more unaffordable.

Borrowers should take some resposibility too

Lenders signed on borrowers with less than perfect credit and only made a certain amount of income – income, under normal circumstances wouldnt qualify them for a loan. Homeowners who signed a loan under these circumstances had the option of looking at the big picture and asking themselves : could i really afford this house?

 

What does the government do?

New mortgage bail out plan! Politicians, liberals and conservatives and honest mortgage paying people alike, I’ve listened to a lot of them since the Bush administration signed this bill this week. I can tell you 70% of them are not happy campers. They view this bill for what it is: A get out of jail free card. A bail out. You signed to purchase a house, have difficulties making the mortgage, your home goes into foreclosure and the government steps in to save the day. Click here to learn more about it?

 

I work with a lending company who specializes in negotiating with lenders to keep borrowers out of foreclosure. The process is very time-consuming as the bank/lenders will play hard ball. They want the money that’s owed to them. But at the same time, they do not want your home! They want you to keep it. We try to work with the borrowers by encouraging them to save their money, keep a budget and comply with the requests of the lenders to bring your account current and as i mentioned, keep you out of foreclosure. We also offer advice and lots of it. The mortage crisis not only affects our economy but its an emotional ordeal too.