Where have All The Sub-prime Loans Gone?
I found a message at one of the mortgage assistance websites, a person was asking “Where can I find a Sub-prime loan?? I thought that’s a great question. Where are all those Sub-prime lenders?? All one needs do is look at www.ml-implode.com to find out.
As a result of poorly run companies,criminal investigations, etc, one will find as of today 387 sub prime lenders who are no longer in business. The very best option now days for someone is to re-build their credit and save money for down payments and closing costs. Even with an FHA or VA loan, the best option is to strive for a streamline re-finance.
The only item the underwriter will really look at is the mortgage payment history over the last two years. THERE IS NO SUCH THING AS BEING LATE ON A MORTGAGE PAYMENT FOR ANY REASON, to qualify for an FHA or VA streamline loan.
No Free Meals – FHA And VA Mortgages
One idea that every borrower needs to understand is that FHA and VA lenders are not chary about lending money to people that have been late on their payments. All of the loans I have discussed thus far have the same guidelines and these guidelines do NOT exist in a vacuum. In other words, the notion that one lender has a different set of guidelines than another for FHA, VA, etc than every one else is a fallacy. Do NOT be fooled. If it sounds too good, too weird, too off the wall… it IS!
Sub-prime Loans Are History
Sub-prime loans are a thing of the past. The days of easy money are gone and no one wants to take any risks on bad credit, high LTV’s, low FICO scores, high DTI’s and bad properties, especially where the foreclosure ratios are very high for a given area. One is better off securing an unsecured loan or waiting before thinking about purchasing or re-financing their current mortgage.
Sub-prime Loans Personal POV
I was a Senior Loan Officer in a company when a company that used to do business with us for our sub-prime borrowers folded. What we found out, as a company and to our horror, was that the lender had not the proper licensing to conduct business in New Jersey and that they had been inflating property values to get loans closed.
As a result, by an order of NJ Division of Banking and Insurance (NJDOBI) the company was ordered shut down and the owners of the company were ordered not to re-open and as individuals, the principals in the company and ALL of their employees were barred from ever working at any mortgage company in the state.
The Best Decision You Can Make this Year
If you will do nothing.. don’t expect anything to happen.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance.. You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. So do your math…