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The United States Housing Bubble: An Overview
The United States housing bubble was an economic bubble that affected many parts the United States including Colorado, Nevada, Arizona, Florida, Oregon, Michigan and the southwest markets. The prices of homes started to rise and peaked in the year 2005, started to drop in 2006 and are still declining. The increase in foreclosure rates in the
Mortgage Broker: Tasks And Responsibilities
A mortgage broker is a person or an entity that acts as an intermediary between the mortgagee and the mortgagor. Historically lenders and banks used to directly offer their mortgage products to consumers or borrowers. However as markets have grown competitive, so has the role of the mortgage broker. This is because a broker can
The Sub-prime Mortgage Crisis: A Vicious Cycle
The subprime mortgage crisis is an ongoing real estate crisis and fiscal crisis triggered by a spectacular increase in mortgage delinquencies and foreclosures in the United States, with major unfavorable repercussions for banks and monetary markets around the world. The crisis, which has its line in the closing years of the 20th century, became obvious
Strategic Default Dilemma
In these troubled economic times it is not unusual for the price of property and real estate to go down. In many cases the amount that is owed by the mortgagor or the borrower on the promissory note is much higher than the real cost of the property. Furthermore if the cost is going to
Equitable Mortgage Basics
An equitable mortgage is one which does not meet the criteria of a legal mortgage but are considered mortgages under equity. There are numerous situations that can lead to an equitable mortgage. As of 1961 the English court of law required the consent of the court before such mortgage could be put into effect. When the
Mortgage Acceleration Clause
An acceleration clause allows the lender to immediately call the loan due and payable in certain events. These events can range from selling the property to another person without paying the balance to the lender to making major changes to the property without informing or ...
What is a Debt Service Coverage Ratio?
The debt service coverage ratio (DSCR) is the ratio of cash on hand for debt servicing to interest, principal as well as lease payments. It is an accepted yardstick utilized ...
Federal Housing Administration: Supporting Mortgages
The Federal Housing Administration (FHA) is a United States Government agency which was created in 1934 as a part of the National Housing Act of 1934. The main objectives of ...
Predatory Mortgage Servicing: Avoiding Being a Victim
Predatory Mortgage Servicing is a term that is used for describing the abusive, unfair, fraudulent or deceptive mortgage servicing practices used by the mortgage servicers. These mortgage servicers are a ...
Hard Money Loan: Raw Deal
A hard money loan is a type of asset backed financing which is secured by pledging the value of the property as collateral. These loans have very high interest rates ...
Shared Appreciation Mortgage: Long Term Waste
A shared appreciation mortgage (SAM) is one which is related to the appreciation of the property in a mortgage. This means that the lender will receive a part of the amount that has appreciated or increased over a specific period ...
Chapter 7 Bankruptcy
In the United States chapter 7 bankruptcy is the most common among the various other types of bankruptcies available. This type of bankruptcy can be used by businesses as well as individuals which basically governs the process of liquidation. This ...
What Are Mortgage Calculators?
Mortgage calculators are used in determining the amount of mortgage or property that a person can afford. These calculators can also be used for comparing costs of several different loans and to calculate the impact of monthly or bi-weekly payments ...
What Is Refinancing?
Refinancing refers to the replacement of an existing debt obligation with a debt obligation comprising of different terms. The most widespread consumer refinancing is for a home mortgage. If the substitution of debt takes place under financial suffering, it is instead ...
Ginnie Mae: Boon Or Bane?
Ginnie Mae is an acronym for the Government National Mortgage Association which is a government owned corporation. It came into existence when the Federal national association was split into two parts and one was Fannie Mae which was a private ...
The Process Of Foreclosure
The process of foreclosure can be slow or it can be rapid. It completely depends on the state and the type of foreclosure that is being enforced. In the United States there are two basic types of foreclosures; a strict ...
