Oct 27 2008
Times Are Changing
I worry about anyone who relies on the mortgage and real estate industry as their means of income. Changes are going to have to be made before consumers are able to acquire loans at the capacity they once did. Real estate and mortgage professionals are looking at loan modification leads to get them through this crisis. As with every profession, change demands looking at different opportunities.
When a lender modifies a loan the borrower’s new mortgage payment, including insurance and taxes, eats up a lower percentage of their pre-tax income. This percentage, known as a debt to income ratio, topped 50% for some loans during the boom. Different strategies are used to achieve a lower payment for the consumer. Lower interest rates, extended loan life and principal deferral to the final years of the loan have made the loan modification business an attractive one.
The opportunity to change the way mortgages are repaid gives consumers and mortgage professionals hope for the future in the real estate and mortgage business. There is hope. We just have to look at different avenues and not be afraid to hold on.
4 Responses to “Times Are Changing”
The mortgage game has definitely evolved. Will it be for the best or the worst remains to be seen. But you are right, they can’t be afraid to explore other avenues.
That’s exactly why I’m still renting and will be renting for a while. Why would I pay over $2500 a month to “buy” a house if I can rent the same one for less than $1400/month?
I’ll buy a house when prices are more realistic.
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in the west coast especially many homeowners now in a situation where they are forced to look at loan modification and even short sale. No doubt some people will make a profit on those. I encourage home owners to look into the options available to them and to get informed on the related procedures and requirements. Sticking your head in the sand is the worst.
I hear what lap top said, but if you do own your home,the possibility of being forced into going back to renting just feels like a true horror story.
Yes, it does.
My friends bought a house about 1.5 year ago for about $380000 now it’s $340000 on Zillow.
Not sure what they are going to do if the price goes (and it will) to $300000.