Comments on: What does it mean to default on a mortgage? what are subprime mortgages and how do the two relate? http://insurance-loans-mortgages.com/37/what-does-it-mean-to-default-on-a-mortgage-what-are-subprime-mortgages-and-how-do-the-two-relate/ Money questions and answers! Thu, 24 May 2012 13:30:51 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Duane http://insurance-loans-mortgages.com/37/what-does-it-mean-to-default-on-a-mortgage-what-are-subprime-mortgages-and-how-do-the-two-relate/comment-page-1/#comment-250 Duane Sun, 25 Nov 2007 20:46:00 +0000 http://www.insuranceloansmortgages.com/mortgages/what-does-it-mean-to-default-on-a-mortgage-what-are-subprime-mortgages-and-how-do-the-two-relate#comment-250 1. The people who are defaulting on their motgages are not able to make the mortgage payments. 2. Too many lenders involved to list! 3. California and florida have the highest default rates because of housing being overpriced! 4. Most consumers are tapped out for cash and have less to spend, this will drive the economy downward. 5. Borrowers have to live within their means! Not everyone can afford a McMansion! Lenders will have to offer a longer term like 40 years on a mortgage at fixed rates the buyers can afford to stop the market from tumbling! 6. This is the big one! What could have been done earlier in this crisis to prevent it is lenders not doing just MANUAL UNDERWRITING and not checking peoples credit reports and score!!!! This practice led to the "liar loan" and consumers got drunk with greed and spent more than they could afford!!!! No one bothered to check a consumers debt to credit ratio while being prequalified for a mortgage! This is why credit reports and scores are so important! Lenders took advantage of the shortsightedness of buyers just to collect their commissions and soon went out of business! 7. Those who forget the past will be doomed to repeat it! Borrowers will have to learn to live within their means and spend what you can afford and learn how to use credit wisely! That is the only thing that will fix this in the long run!<br><b>References : </b><br>http://www.easy-credit-repair.net 1. The people who are defaulting on their motgages are not able to make the mortgage payments.
2. Too many lenders involved to list!
3. California and florida have the highest default rates because of housing being overpriced!
4. Most consumers are tapped out for cash and have less to spend, this will drive the economy downward.
5. Borrowers have to live within their means! Not everyone can afford a McMansion! Lenders will have to offer a longer term like 40 years on a mortgage at fixed rates the buyers can afford to stop the market from tumbling!
6. This is the big one! What could have been done earlier in this crisis to prevent it is lenders not doing just MANUAL UNDERWRITING and not checking peoples credit reports and score!!!! This practice led to the "liar loan" and consumers got drunk with greed and spent more than they could afford!!!! No one bothered to check a consumers debt to credit ratio while being prequalified for a mortgage! This is why credit reports and scores are so important! Lenders took advantage of the shortsightedness of buyers just to collect their commissions and soon went out of business!
7. Those who forget the past will be doomed to repeat it!
Borrowers will have to learn to live within their means and spend what you can afford and learn how to use credit wisely! That is the only thing that will fix this in the long run!
References :
http://www.easy-credit-repair.net

]]>