Mortgage News
August 22, 2007

Foreclosures…

Did you know that one out of 5 sub prime mortgages originated in the last 2 years will go into foreclosure and that this will be recorded as the worst foreclosure rate in mortgage market history?

Because of this, federal and state rules are requiring lenders to ensure that loan terms and underwriting standards are consistent with prudent lending practices, including consideration of a borrower's repayment capability. That means there will be fewer of these adjustable rate mortgages with the interest only payments, which are one of the most risky loans available in today's market.

These new rules will affect the "American Dream" for some borrowers due to the borderline credit history or their high debt-to-income ratios, but it could also help others to avoid going through the agony of foreclosure.

There are many ways that one can improve their credit to avoid being affected by the changing mortgage market. There are also many financing and mortgage options available to you.

Credit Report Accuracy

It is very important to check your credit report regularly (twice a year) and here's why…

• 30% of credit reports contained credit accounts that had been closed and were still listed as open accounts
• 8% were missing major credit that demonstrate credit worthiness
• 22% listed the same mortgage loan twice
• 25% contained serious errors that could result in credit denial, such as false delinquencies or accounts that did not belong to the consumer
• 15% of credit reports are completely accurate!

Where, exactly, are you now?

We all have those memories of growing up in our parents' homes, with one bathroom and the 25 foot green cord dangling from the phone on the wall in the kitchen. And most of us probably, at one point or another said, "when I grown up and get my own house, it's going to have…"

However you finished that sentence, did you achieve it? If so, be it big or small, it's where you live. It's where memories are made and comfort is found. It's your home, not just a house, but maybe it needs to be bigger, or smaller, it all depends on where you are in your life.