Many people assume lawyers have one job, and that is to go to court to defend or try a case in front of a judge. Being married to a lawyer, I have come to know that there are thousands of types of lawyers who are all trained in doing different things. Lawyers are trained to handle legal paperwork, so it is only natural to see lawyers advertise their services in helping troubled homeowners file for loan modifications. (Read More.....)
|
||||||
|
|
|
|||||
|
Copyright © 2012 Foreclosure Help - All Rights Reserved |
||||||
The common rule amongst lenders is for a buyer to consider a potential home that runs about two-and-one-half times their annual salary. Lenders like to see 20 percent of the home's price as a down payment. With a down payment under 20 percent, a buyer may wind up paying private mortgage insurance, which is a safety net for the bank in case you fail to make payments. Mortgage insurance can cost approximately 0.5% to 1% of the loan value, up to $3,500 per year on a $350,000 home, or $5,000 on a $500,000 home. It is money paid out over top of your mortgage payment that does not count toward your principal or interest. 
The subprime industry was at one time, an option given to those with damaged credit, and people who had few options to obtain a home. Much research has shown that an astounding number of people who mortgaged under a subprime loan could have qualified for much better. We have a combination of lenders wanting to pocket quick money and a buyer that wasn't educated on the biggest decision of their lives.