Banks to the rescue: new mortgage loans to save you from foreclosure!
New mortgage loans to save a day, and you from foreclosure - first banks created the problem, now they are the saviors? First mortgage lenders were busy creating loans to make a million dollar home affordable for almost anyone. They started with interest-only mortgages, then introduced 40 year amortization, later came up with the crown jewel, Option ARM. Most recently there was an idea to push a 50 year amortization, at least in California. Since I am not in California, I haven't followed that closely. The latest new product was Countrywide Home Loans Payment Advantage 5 Year ARM.
Now with the record number of foreclosures already in the books, and much more to come, as some are predicting that over 1 million homes will be foreclosed in a very near future, 'federal bank regulators called on lenders Tuesday to work with distressed borrowers unable to meet payments on high-risk mortgages to help them keep their homes'. Among the ideas is the restructuring of the now-expensive adjustable rates mortgages to the now-cheaper fixed rate mortgages, and stretching sub prime loans terms to 40 years from the current maximum 30 years.
Wed Apr 18, 2007 03:04PM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (1)
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