Everyone, from the wealthy down to the hourly worker, wants to own a home. It's the American Dream right?
Until around 15 years ago, if you didn't have money for a down payment and pretty good credit, it was almost impossible to get a mortgage. Then things started changing. Banks started approving mortgages for more and more people. Suddenly everyone could have a home of their own.
But the mortgage companies weren't being kind, they were secretly getting ruthless. They started peddline mortgages with adjustable rates, interest-only payments, and multiple-payment options. Why did they do it? Simple - to make more money.
Maybe you got one of those mortgages. There's nothing wrong with most of them. In fact, they helped millions of people finally step out from under the shadow of a landlord and get a place of their own.
The problem is that no one explained to you exactly what you were getting and what the implications of these loans really were. The loan officers and morgage brokers painted a very rosy picture telling borrowers that they could just refinance in a couple of years. Nobody told you the full story...About how refinancing depended on your home's value going up. About how your adjustable rate loan could go up every single year if you couldn't refinance. About how your principal balance would never go down and your payments could double or even triple.
Didn't the banks know people would fall behind on their mortgages? Didn't they see this coming a mile away?
Absolutely! So why did they push these loans on people? Simple. It was all about money. You see, mortgage banks knew that they could package and sell these mortgages to investors who were hungry for high-risk, big-money deals. And were not talking just about investors in the United States. Much of this investment came from hedge funds filled with money from China, Japan, Saudi Arabia, and a host of other far-flung parts of the world. What's incredible is that one mortgage might be divided up 30 or 40 times; little pieces held by 30 or 40 investors. This is greed in its most basic form.
If you've been watching the news at all the last couple of years, this shouldn't all be new information. So why am I going on about this? To let you know that if you are one of the millions of Americans facing foreclosure (more than likely on property that is no longer worth what it was) or are falling behind on payments not knowing how much longer it will be before the lender forecloses - that there are real ways to fight back and hold on tightly to that house you scrimped and saved for. To let you know that if you own a home in Mississippi and are ready to take control and fight for your home - pick up the phone and call me to discuss a plan of attack.
Disclaimer: This blog is intended as general information purposes only, and is not a substitute for legal advice. Anyone with a legal problem should consult a lawyer immediately.