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Risky Loans - Spread the Word

By
Mortgage and Lending with Signature Property Consultants

I recently received a startling statistic about risky loans.  It seems that 1 out of 3 homeowners have no idea what kind of loan they have. Under better market conditions, that might be okay. But in the current market where it is predicted that over 2 million homeowners will lose their home due to sudden, unexpected and devastating increases in their mortgage payments, it's imperative that one know exactly what kind of loan he or she has, and even more importantly, when and if their loan will recast and go up.  I would encourage you to share this information with others you know who are homeowners (you'd be surprised how many people who seem to be doing well are really struggling -- or will be soon).  Whether it be with me or someone else, many of the people we know NEED to have someone help them find out the important details on their loans.  By doing so, they can get the advice they need to help them make the wisest decision possible -- before taking devastating hits to their credit scores and equity.   

For more info, see the following article: http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=akOEPec30TR4

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Kimberly:

If 1/3 homeowners truly have no idea what kind of loan they have, they have committed loan fraud because the loan papers they signed at their closing stated they understood their loan.

In this market aren't most mortgages risky.  When property values drop by 20% - 40% and you have a mortgage on property that was hit like this, I would say the mortgage now is risky.

Oct 01, 2007 07:22 AM
Kimberly Malone
Signature Property Consultants - Baldwin, NY
I agree 100%.  Yet, I still find that many of the people I've come across recently have signed the papers and still have very little idea what they have gotten themselves into (i.e., if, how and when the mortgage rate/payment will adjust, what the caps on their rates are, what the pre-payment penalties are, etc.).  I'm not placing blame, I'm just saying that, as professionals, we would be doing the general population a lot of good by encouraging those that haven't to pay attention to what they have (heck, we could end up really helping some people out -- and, provided that they are in need of a refinance, we could land a deal or two in the process).  Unfortunately, many of the calls I'm getting are coming just before their mortgage payments are set to adjust by $300 - $800/mo. 
Oct 01, 2007 08:14 AM
Anonymous
T.A.G

Hey! I agree with you 100% Kim. You should always be aware of what you're getting into when entering the market. I firmly believe that there should be a safety net  especially for poor and middle class first Time buyers. I know for sure from past experience that you're the person to come to if you want to be treated fair and equal. I feel 100% confident that when I sleep at night that I will never have to worry about falling short. Your experience , professionalism and expertise in this field speaks for itself.

T.A.G

E-mail Ellasons6@aol.com

Jan 12, 2008 04:14 PM
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