AM I GOING CRAZY OR WHAT ?
It's not just the SALT LAKE VALLEY, but all across the nation, the Real Estate Mortgage Lending Industry is in big trouble. Headlines tell us that thousands of home mortgages are in default, foreclosures are increasing in record numbers, and major lenders are either not loaning money on houses anymore, laying people off by the hundreds or shutting their doors until they can reorganize. The problem it is said, are sub-prime home loans.
These problems have been blamed on a number of things; greedy lenders, cavalier Real Estate Agents, naive home buyers, over-leveraged and amateur Real Estate Investors to name a few. The truth is, there is enough blame to go around, and should.
What makes me nutso though, is that as each one of these parts of the puzzle try to work their way out of the problem some lenders continue to muddy the water with false and misleading ads. The only possible reasons these ads are running, under the circumstances, is to generate names of prospects for a clever salesperson, giving the salesperson an opportunity to bury the borrower deeper in the hole. Another possibility is that it generates Leads (names) for those companies that sell them to Realtors for $30.00 to $60.00 a pop. I am ashamed to say in the past I have bought some. (but that's another matter).
Take a look at some of these teasers ads being promoted to frustrated, scared, confused home buyers. The two low payment teasers are @ about half the going rate for mortgage money today. The Oprah loan is amazing, a low rate AND NO CREDIT CHECK. I shouldn't call this the "Oprah loan" It should be called the "Santa Claus Loan" The last loan is related, (maybe it's "Mrs Claus".) and possibly is the cause of much of the difficulties we now face. There are plenty of these loans out there now. I doubt that to make more of them offers much of a solution even if they were still available.
Payment Teasers:
$500K Loan
For Only
$1609.00 per mo.
$430,000 Only
$1299.00 Per Mo.
As seen on Oprah
Low Rates $145,000
Refi for $484.00 per mo.
NO CREDIT CHECKS
Get up to 125% of
your homes value
No loan fees
So, let me finish this off before I explode. If you have a problem and need to restructure your loan, go first to your current lien-holder and see if you can negotiate some relief. Don't ask for the moon, be realistic, businesslike. Remember no one twisted your arm. You share part of this burden, and in most cases there is not one reason why you should not have it hurt a little. (OK there go my clients). If that does not work, contact some local lenders, people who live in your community, folks who have an address within driving distance. Get someone that answers the phone and that has helped people in your area, local Banks or Credit Unions. Tell them the truth, accept your part of the blame, show them how they will get their money back. And....... Keep your fingers crossed.
I can't help you, that's not what I do, but I do know people that can. I'd be happy to share these resources with you.
I truly hope none of this was of interest to you, and that during the last few years you avoided many of the pitfalls that have caught up with a large number of Utah home owners. If that is so, congratulations. If not, get busy, and for goodness sake don't call on ads like these.
Good Luck... Corie