Homeowners feeling pain from recent lender fallout

Over the past few months many of the subprime lenders have gone out of business with many more on the bubble. This was due to the 100% financing provided to borrowers that really didn’t qualify for the loans they were approved for.

Now many of these homeowners are in a tough spot as the 2 and 3 year fixed rate loans they received are turning adjustable. The payment shock has many of these borrowers scrambling to refinance before they lose the home to foreclosure.

If you have a short term fixed rate loan you should make sure you are aware when that loan changes to an adjustable rate mortgage and prepare your credit profile for a refinance in advance of that time. Don’t wait till you receive the lenders notice of the rate increase to start the process.

Contact a trusted loan officer and go over your qualifying criteria if you need help. Not all loan officers have the right skill set so if you do not know where to start feel free to contact me and I will guide you in the right direction.

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