Efforts Made To Help Borrowers Avoid Foreclosure

RE:Efforts Made To Help Borrowers Avoid Foreclosure

Jane — Mon, 20 Aug 2007 11:00:00 GMT

In response to Mortgage 101: I've also been in the mortgage business for 10 plus years and I have seen only a handful of times a lender who has advised a borrower to not purchase a home that they qualified for. Regardless of whether the borrower qualifies at 30% or at 55% of their income there are few loan officers that would turn away a purchase because it wasn't the smart thing for the borrower to do. Esp. in a market where the competition for realtor business is fierce.

RE:Efforts Made To Help Borrowers Avoid Foreclosure

Anonymous — Wed, 04 Jul 2007 11:00:00 GMT

Response to CWolford. How about the responsibility of mortgage originators who put people (most of whom do not understand the mortgage product they are sold) into loans that require 50% of their gross income? Commission based origination, LO selection of appraisers and the wink, wink sell, sell attitude of lenders has corrupted the origination process. Many noob LO's are taught that unethical practices are business as usual. Regulation, licensing and accountability are coming...sleep in it.

RE:Efforts Made To Help Borrowers Avoid Foreclosure

Mortgage 101 — Mon, 02 Jul 2007 11:00:00 GMT

I would like to remind you that it also has to deal with MANY people are losing, have lost their jobs. Hence they can not afford their payment. At least in MI that is the current case. Values of their homes have gone down, they can not afford to bring in the extra monies in the case if they did want to refinance say out of a option arm and or regular arm product.

RE:Efforts Made To Help Borrowers Avoid Foreclosure

CWolford — Mon, 02 Jul 2007 11:00:00 GMT

I think the problem moreso is that there exists a mindset of entitlement without personal responsibility. I have been a mortgage banker for nearly 10 years, and it amazes me how people blame lenders for offering them products that they have demanded we provide. The subprime guidelines were liberal, but how many people can really afford to pay out 50% of their gross income to their mortgage? Just because you qualify, doesn't mean it's the right decision. What ever happened to common sense?

RE:Efforts Made To Help Borrowers Avoid Foreclosure

Mark Hastert — Fri, 29 Jun 2007 11:00:00 GMT

Has it occured to the lenders and powers that control lending policy & practices that just maybe the problem is that the subprime borrower is allowed to take on more than they can afford? The borrower has already demonstrated their poor credit worthiness so they simply should not be borrowing as much money. Why is this so hard to understand?