Subprime mortgage “crisis”. Several questions?
by Mortgage Rates on Saturday, October 30th, 2010 | 2 Comments
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They saw it coming.
They will sell off the mortgage notes to other companies before closing down.
Those that cannot afford to pay the loans will most likely loose their houses; but the government is trying to minimize the damage to the economy.
There are other companies as well as private investors that will purchase the loans from the sub-prime companies that are going BK or out of business.
Sub-prime mortgages have been around for years and years as well as adjustable rate mortgages (ARMS). The difference in this market is that the properties did not appreciate in value as they had in the past.
Therefore since the properties did not appreciate the borrowers could not refinance even if they had to refinance into another ARM, because the equity was not there.
Had the properties appreciated in value this crisis would not exist. The media would not be writing or talking about it and our stupid senators and congressmen would not be attempting to make laws restricting sub-prime lenders.
There are presently other sub-prime mortgage companies positioning themselves to take the place of the ones that will no longer be around.
Now as far as those homeowners that can not make their monthly mortgage payments they will lose their homes through foreclosure or will have to sell to someone else that can make the mortgage company.
I hope this has been of some use to you, good luck.
“FIGHT ON”