Most recently, the devaluation of homeowner equity has played an extremely negative role in our current mortgage climate, and has adversely affected thousands, perhaps millions, of homeowners throughout our country. This is especially true for those who have purchased their home in the past 2 years, during this time of accelerated declining market value.
For the borrower who commonly bought their house by putting down 10% of the purchase price, and took out a 1st and 2nd mortgage, has seen his equity all but disappear. This has made it virtually impossible for the homeowner to improve his condition by refinancing because lenders have all but eliminated 100% financing. Even 95% financing is very difficult to obtain.
Furthermore, if a prepayment penalty has been added to the loan any possibility of refinancing is virtually eliminated.
Such a situation of declining equity value does not create a problem for someone who originally took out a 30 year fixed 1st mortgage because their interest rate will stay constant throughout the life of the loan, but for those who took out a 2 or 3 year adjustable mortgages and find their mortgage payments have increased substantially, this can be dangerously problematic.
In fact I believe it is the primary reason for all of the foreclosures now occurring in this country; a declining market that has eliminated any equity in the home, combined with a mortgage payment that has increased to a level that is impossible for a borrower to comfortably pay.
Without any value in their home and burdened with a high mortgage payment, home owners are simply walking away in droves.
If you are caught in this unfortunate situation of a rising mortgage payment and very little equity, you too might be considering walking away. If, however, you have managed to retain 5% of your equity and your income, assets and credit score are all in good standing there is still an opportunity for you to refinance your way out of your dilemma.
I would be happy to assist you by providing a FREE analysis of your loan situation. Simply log onto my website, put in your information, and I will contact you soon afterwards. Good luck in this turbulent marketplace. I sincerely hope that you will be able to hang onto your home until the dust settles and values being to increase again.
My name is Allen Sayble and I have been a loan officer since 2001. I specialize in hard to find loans for borrowers with less than stellar credit and income situations, but also work with refinances and purchases for borrowers in good standing. I am based out of Ashland, Oregon and can write loans in Oregon and California. At this time in the mortgage business it is most important for each borrower to work with a professional loan officer.
It's also best to work with a broker, like myself, who has access to all of the different lenders so as to not be restricted to one lending institution or bank. Please visit my website http://www.mortgageconsumer.com to learn valuable information about the loan business so that you can be well informed about the loan process and make the most educated decision with regards to your home loan.
You can also contact me at 541-324-9623.
By Allen Sayble
No comments:
Post a Comment