Avoid Unregulated Subprime Loans, Says MortgageCreditProblems.com
MortgageCreditProblems.com, a primary source of mortgage lending information and bad credit mortgage loans for people with poor credit, states that subprime borrowers fearing foreclosure should compare rates and terms between several different lenders and work with government-regulated firms. According to a recent article in The Washington Post, approximately half of subprime loans were made by lenders subject to no federal regulation. However, federal regulators believe that many subprime loans can be refinanced to fixed rate mortgages.
(PRWEB) June 15, 2007 -- Referencing a recent article in The Washington Post highlighting potential problems in the subprime mortgage market, MortgageCreditProblems.com gives solid advice to homeowners nervous about the prospect of foreclosure. MortgageCreditProblems.com, a primary source of mortgage lending information and bad credit mortgage loans for people with poor credit, recommends that subprime borrowers fearing foreclosure need to compare rates and terms between several different lenders and work with government-regulated firms (http://www.mortgagecreditproblems.com/).
In the next two years, about 2 million subprime mortgages (14 percent of the subprime loan market) are expected to re-price or adjust. Many borrowers will be unprepared to make the substantially higher payments and may experience financial difficulties or even default on their mortgages. FDIC Vice Chairman Martin Gruenberg stated that, "During this rapid growth in subprime lending ... predatory lending -- the failure to underwrite based on the ability of the borrower's ability to pay -- became prevalent in the subprime mortgage market."
Foreclosures and late payments have increased as many subprime loans reset at higher rates while home prices fall or remain flat. According to MortgageCreditProblems.com, borrowers can avoid predatory home loans by obtaining several quotes from regulated lenders and comparing rates and terms (http://www.mortgagecreditproblems.com/).
However, Gruenberg also stated that federal regulators feel that many subprime loans can be refinanced to fixed-rate mortgages. Subprime borrowers facing rate resets in the near future can look for reputable, regulated lenders and compare rates and terms on fixed rate mortgages. Borrowers with high rates on subprime loans procured from unregulated or predatory lenders may be able to refinance to better terms now.
MortgageCreditProblems.com is a primary source of mortgage lending information for people with poor credit history or a low credit score. MortgageCreditProblems.com connects borrowers with bad credit to lenders that are willing to give them credit despite their credit history and also offers articles on improving credit scores, refinancing with bad credit, and debt consolidation.
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