In recent months the media has been rife with stories of a meltdown in the mortgage sector. And while reporters are often prone to hyperbole, there’s no denying that the home financing industry is suffering. Mortgage investment funds have faltered, home prices have declined, residential foreclosures are on the rise, and about one hundred nationally operating lenders have closed their doors.
But many homeowners struggle to understand what the current mortgage climate means for them. What caused the current situation? How will the downturn affect them? And what can they do to avoid any negative repercussions when purchasing or refinancing a home?
Domino Effect
Recent events within the mortgage industry have fostered a domino effect which has toppled many precariously balanced facets. During the most recent housing boom many borrowers felt emboldened or were encouraged to obtain adjustable rate mortgages on homes which were realistically outside their comfort zone. Some went so far as to adopt Option ARMs and pay a minimum payment which didn’t even cover monthly interest. Unfortunately, as interest rates rose and teaser rates expired, many of these...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
