Country Wide Home Loans
70Shocking Facts on Country Wide Home Loans
Country wide home loans given to low-income families for over-valued homes are part of the what has accelerated the current credit and mortgage crisis.
Now home owners are waking up to find they have ‘negative equity’ – the value of their property is worth less than their mortgage!
As a result of these above facts together with the shocking rise in the price of gas, most families will be hit hard and will eventually be forced into foreclosure and ultimately bankruptcy.
The lenders also have a sneaky clause in the contracts that gives them the right to call in the country wide home loans whenever they wish which many individuals are not aware of.
If you are unable to meet your now doubled minimum payment your credit card company may offer to consolidate the debt by giving you a loan against your home equity. This is another way of making sure they have some security in case you default on the new loan in which case they will sell your home .
With the Wall street crisis and as fuel prices continue to rise, the credit crunch will continues to bite, and we might see a wave of foreclosures well beyond what we saw in 1980s.
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The four horsemen are saddling up. Thank you for your help.
It's the true.. now the result of unsafable loans is now effecting the united states...
Yup very true. Many banks also issued loans when they should never have. I myself over a year ago went into the bank to sort out some of my accounts and the individual serving me, after looking at my accounts offered me an unbelievable loan . Not unbelievable in quality, but in quantity. They did not take into consideration my lifestyle or spending habits, just that i had enough money left every month to pay this loan off.
Obviously i declined :).
Bob,
This is the reckless behavior which has now come back to haunt them.
Country wide has helped to put our country into a huge problem a couple of years ago with the sub primes, being in the debt relief industry I can see first hand on a day to day basis the damage they have done
You definitely will reap what you sow.
It's no wonder the foreclosure rate is skyrocketing. With all of the predatory lending that has been going on, many are now losing their homes. Before you sign any mortgage agreement or apply for any new credit, make sure that you read AND understand all of the fine print.
Home owners should be aware of all the rules and policies before acquiring loans..that way they can avoid future problems and misunderstandings.
I blame it on the banks. If they didnt hand out money so willy nilly there wouldnt be so many people stranded now with no way to pay off their mortgage
Ok, that is a sneakly clause that I didn't know about and I have one of these loans. Thanks for the shock and knowledge. Good hub :)
Sneaky indeed these clauses are. It's more a tsunami of foreclosures. This is the second tsunami the experts were predicting after first one in Asia.
ARM Loans
Another way that lenders entice borrowers into financial difficulties is through the use of ‘adjustable rate mortgages’ (ARMs). Most ARM loans are a gamble that the interest rates will not rise over the course of the loan. This we know is not possible in today's volatile financial crisis. And considering that the terms for these country wide home loans extends up to 30 years it is ridiculous to expect a constant rate of interest for such a long period.
So if you cannot normally afford to repay the loan don't buy the house otherwise you are just setting yourself up for a foreclosure.
Government Home Loans
To encourage home ownership, the federal government guarantees loans for those who might have a difficult time qualifying for a conventional loan.
The Department of Housing and Urban Development (HUD), has several fha government home loans for low to medium income home buyers.
These loans offer market interest rates but with a lower down payment requirement. They also require you have a good credit score. You must apply for this type of loan through a HUD approved lender.
Veterans and service persons can qualify for getting a VA home loan which are loans guaranteed by the Department of Veterans Affairs (VA). The terms of a VA home loan do not even require a deposit but you have to be vetted by the VA.
Low income family can also access government home loans from the Pertinence SummarizerRural Housing Service (RHS). These loans require no down payments but you need to have an acceptable credit score.
Most of the above government mortgage loans are offered through the traditional home loan companies and you can get their details online to help you secure funds to buy your home or refinance an existing mortgage.
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- Country Wide Home Loans updated Sun Oct 26 2008 5:26 pm CDT
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- The Shocking Truth About All Country Wide Home Loans
What your bank does not want you to know… We appear to entering a period of financial instability, with four key factors negatively affecting the economy. - 14 months ago
BlueSkyBright says:
14 months ago
I agree totally. We are heading for some really tough times. Grab your wallet and hunker down.