| Bad loans to blame for mortgage crisis |
| Pub Date: Wed, 20 Aug 2008 10:00:00 EST |
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During the housing boom, many borrowers were eluded into mortgages they couldn’t afford. These mortgages are dubbed “liar loans,” as they don’t require proof of the borrower’s income or assets. The mortgage and housing industry today is a result of these liar loans gone bad. Most of these home loans are concentrated in areas where foreclosures have hit the hardest, namely Florida, California, Nevada and Arizona. Unfortunately, homeowners with liar loans are stuck because they can’t refinance since housing prices in those markets have decreased and lenders are now requiring full documentation of income and assets. Many of the lenders that specialized in so-called liar loans like Bear Sterns and IndyMac Bank are now defunct. Countrywide Financial Corp. was another major provider of liar loans. Today, they are part of Bank of America Corp., and more than 12% of their $25.4 billion in liar loans are in default, and 83% had little or no documentation. Even riskier than those loans were option ARM loans – adjustable-rate mortgages that gave borrowers the choice to defer some of the interest payments and add them to the principal. The low monthly payments that came with these loans helped drive up home prices by allowing people to buy more than they could really afford. Many blame Fannie Mae and Freddie Mac which bought or guaranteed liar loans from these lenders and believe they should have stuck with more traditional loans. |
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| Seniors delaying retirement |
| Pub Date: Tue, 12 Aug 2008 10:00:00 EST |
| The economy has affected people in so many ways that some seniors are even considering delaying their retirement. Many seniors are deeply affected by stock market losses and declining home values, as these two markets are where most seniors invest their money in. [...] read more |
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| Reverse Mortgage Advice |
| Pub Date: Mon, 11 Aug 2008 10:00:00 EST |
| Taking out a reverse mortgage is a serious financial decision and should be well thought out. If you or your parents have already taken the necessary steps to educate yourselves on reverse mortgages, talking to a financial planner you trust is the next step. [...] read more |
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| Lenders tightened rules too much |
| Pub Date: Fri, 08 Aug 2008 10:00:00 EST |
| It seems that lenders have tightened their rules too much. From a time when they didn’t verify employment or income, today even a borrower with excellent credit may have a hard time getting financing. [...] read more |
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| Watch out for financial predators |
| Pub Date: Thu, 07 Aug 2008 10:00:00 EST |
| As if homeowners struggling with debt and at the threat of foreclosure don’t have enough to deal with, they still have to watch their backs for financial predators. With financial problems on their plate, predators see suffering homeowners as vulnerable and often use the opportunity to take advantage of them. [...] read more |
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| Is recession over |
| Pub Date: Wed, 06 Aug 2008 10:00:00 EST |
| As most Americans received their stimulus checks over the past couple of months, did it really help boost the economy? [...] read more |
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| Seniors who cant sell still have options |
| Pub Date: Tue, 05 Aug 2008 10:00:00 EST |
| Seniors who can’t keep up with the high cost of living must be in a very tough situation, especially if they are on a fixed income. If you can’t afford to live in your house anymore or you need to supplement your cash flow, you can consider a reverse mortgage. [...] read more |
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| July marks seventh straight month in job cuts |
| Pub Date: Mon, 04 Aug 2008 10:00:00 EST |
| So far this year, the economy has lost a total of 463,000 jobs and July is no different, it marks the seventh straight month where employers eliminated jobs. [...] read more |
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| Which reverse mortgage is right for you |
| Pub Date: Fri, 01 Jul 2008 10:00:00 EST |
| There are three basic types of reverse mortgage loans to choose from. One type is a single-purpose reverse mortgage. They are offered by government agencies or nonprofit organizations and make it possible for low-income homeowners to pay for a specific issue, like fixing a leaky roof. [...] read more |
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