Are Sub Prime Lenders All Washed Up? [mortgage-assumption.blogspot.com]
Auto sales are on the rise in Detroit, and not just for people with perfect credit. Chrysler and other companies are targeting customers with subprime credit, and ... Is Subprime Lending Making A Comeback?
A blow by blow explanation of how the Subprime Mortgage Crisis of 2007 unfolded. This set of events ultimately lead to the Global Financial Crisis of 2008. Illustrated with 3D views of stock charts by MetaView. Visit us on the web at metaview.tv.
mortgage-assumption.blogspot.com The Subprime Crisis Illustrated
It looks as if sub prime lenders are all but a memory. These lenders made a habit of issuing mortgages and loans to those who did not qualify for regular loans, usually because of credit issues. When the foreclosure crisis hit, many of the sub prime loans were the first to default. While the real estate crisis cannot be blamed on the sub prime lenders, they were a contributory factor in getting people to purchase homes that they could not really afford.
Many people who had adjustable rate mortgages found that they were unable to maintain their mortgage any longer because of the new rates. Others found that because they borrowed so heavily against their home, they owed way more than the house was worth. This precipitated many foreclosures. Today, sub prime lending is virtually non-existent. Most people have noticed a decrease in the amount of credit card invitations that they used to get in the mail as well as offers to refinance or borrow against the equity in their home.
The credit market has dried up considerably. The sub prime lending market was the first to go. Most of the sub prime lenders found themselves in bad shape after the housing collapse and ended up being purchased by larger banks.Those who lost their homes due to being involved with sub prime lenders can work on rebuilding their credit rating by using a credit repair service. There are many cases when late payments and even foreclosures can be removed from credit reports. This can enable someone to have good credit as well as access to loans if they need them.
While sub prime lenders are a thing of the past, there is credit available to those with good credit. In order to bring your credit score higher so that you can qualify for a loan, you need to get a credit rewind.
This can allow you to have a better credit score and enable you to qualify for loans and mortgages that are available in the market right now.Having good credit is not as difficult as you may think. When you use credit repair services, you can qualify for better quality loans at lower interest rates and fees as the service will eliminate the negative comments on your credit reports. The sub prime lenders have bit the dust and in their place are lenders that require very good to perfect credit in order for anyone to borrow money.
Related Are Sub Prime Lenders All Washed Up? IssuesQuestion by socialanimal: Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians? What are the major "low" lending standards that has caused the "sub prime" mortgages crises? Best answer for Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians?:
Answer by newjerseyguy
No, its due to lenders not adequately screening borrowers' income and credit history and borrowers too ignorant to avoid getting in over their heads. Then these loans were repackaged and resold as "investment grade" bonds.
Answer by aecruiser
It mainly dealt with subprime mortgages (people with bad credit given terrible mortgages with bad terms) and other adjustable rate mortgages. These loans were made to many different people, not illegal aliens. These mortgages did not have fixed interest rates. When you have an ARM (Adjustable Rate Mortgage) your payment goes up after the teaser rate period ends. Needless to say, many people did not understand their mortgages when they signed up for them and when their payments went up, they were unable to make them which lead to foreclosures. I directly work with corporate finance and what are called asset backed securities and mortgage backed securities. These are loans that are grouped together and "securitized" and then sold off as fixed income investments. As people defaulted on their mortgages, prices on these securities plummetted which has had a profound impact on the economy. The lesson to learn, you need to deal with lenders and financial advisors who have the heart of a teacher and will take the time to help you understand. Also, we need to educate ourselves so that we can make decisions on our own that we can trust. Hope this helps!
Answer by Wayne Z
No. The subprime crisis has nothing to do with illegal aliens. The crisis was caused by mortgage companies giving loans to people with bad credit. People with bad credit are less interest rate sensitive meaning that the loans can be very very profitable......if they are paid. Unfortunately, the mortgage companies found something out the hard way. People with bad credit often default on their obligations. Also, people tend to be very short term thinkers and want show off the big home to the friends and family. So they buy using a mortgage that gives them the lowest monthly payment (interest only or adjustable rate mortgages). A few years go buy and their rate adjusts and all of a sudden they can no longer afford their home.
