Mortgage Guide

George asked:

What are the chances that in order to solve the current subprime / liquidity crisis, the US Government will step in and BUY these CDOs at the current marked-down prices?

One could argue that such a move may on the one hand instantly clear-up the current liquidity crisis which has resulted from the sub-prime meltdown, while on the other (possibly) allow the taxpayer to benefit from the appreciation of the value of these deeply discounted assets as the mess clears and the economy improves.

What do you think? Is this likely? Is this a good idea?

Question posted courtesy of: Nathan

raychels mom asked:

my boyfriend and i recently bought a new townhome. its not our dream house, but we wanted a starter home so we were not over our heads. we did LOTS of research on pricing and mortgage rates before we signed anything. i know that people dont buy starter homes like the used too and i was wondering if anyone else agrees that if alot of these homeowners had took the time to really investigate about sub prime lending would they not be in the mess they are in now?

Question posted courtesy of: Denise

pb0787 asked:

Ideally, I would be interested in finding a blank copy of a typical sub-prime mortgage agreement.

Question posted courtesy of: Albert

JASMINE P asked:

caused the turbulence in the financial markets as a result of sub prime mortgages, why it affected so many different types of financial institutions including the real estate market, and what the Fed. Reserve Bank and Treasury dept are doing to contain the issues. “subprime mortgages”

Question posted courtesy of: Alicia

Shukie L asked:

hi, i am new to mortgages and related topics, but why do lenders (including those who went bankrupt after the crisis) decide to lend money to sub prime customers when they know chances are they won’t be able to pay it? what lenders gain besides interests?

Question posted courtesy of: Gene

Some Guy asked:

I was reading an article in the business section of the L.A. Times today discussing the result of sub primes mortgages after the housing boom. It mentioned that resulting home foreclosures would “slow the rise in rents”. I’m wondering, in an economic sense, how this is possible.

Question posted courtesy of: Jose

gordons_19 asked:

Due to the sub prime mortgage crisis and the general unknown of the USA market right now how does that affect someone who is wanting to buy a home on a rent to own or lease to purchase type purchase? Will people be more interested in getting into their own home on a rent to own or will they be more wary of it because they might end up with a home that has depreciated in value a fair bit? Or do people still see a no money down, no credit check home purchase as their best way to get into their own house regardless if the value drops a bit? Of course, there’s a lot more to house value than just the market. So, how does everyone see the popularity of a rent to own home purchase for a potential homebuyer? A good idea for them or not? Thanks

Question posted courtesy of: Janice

Sustagurl2 asked:

I have heard as well as read, this year alone, 1 million Americans will lose their homes to foreclosure.

The mortgage industry uses so many terms most individuals don’t understand and today, I need clarity!

Maybe, just maybe if people were given a mortgage dictionary, if you will, prior to obtaining a mortgage, they would understand what they are about to pursue.

What do the words “sub prime” mean? Please explain to me, as if I were a ten year old!

Thank You Kindly!

Question posted courtesy of: Kristin

Joe asked:

Have most sub-prime mortgages been “adjustable”?

Are foreclosures up so high because people lost their jobs?

Or are foreclosures so high because the loans adjusted to such a high rate of interest that people are unable to make the payments? If so, about how many percentage points did the “reset” go up compared to the initial terms?

Were the size of the “resets” much higher than would have been expected? Or were the resets no surprise?

Question posted courtesy of: Richard

autoshowplantation asked:

I have a small dealership, 10-12 cars. I do not want to deal with the hassle of going through in-house financing. I know there are many sites that advertise auto loans, but the majority of them just refer people to a dealer who buys the leads. What I need are sources to refer my customers to obtain their own financing. Most of them have marginal to bad credit. What would be ideal is a site where I can sit the customer down, have them put in their information, and get a decision quickly, and a check sent to either me or the customer. Does anyone know of any sub-prime lenders who give online approvals?

Question posted courtesy of: Yolanda