I’ve had to experience first hand the difficulties alot of people are going thru because of all these mortgage rip-offs. First of all they put these people on a 1 year fixed loan with 3 years pre-payment penalty which makes them a substancial commission and then they charge the client another 2% origination fee on top of all the “closing costs”. These clients end up paying alot of unnecessary fees, but that’s not the worst part of it, right now in most states, properties are depreciating, which puts these clients upside down, stuck with a 3 year penalty, no equity to pay a Realtor to sell or to pay for a Refinance. NO OPTIONS.
In a perfect world, all these Banks should at least forgive the penalty, in exchange for the client to refinance with them, charge them a slight processing fee for the new loan conversion, rather than leave all these borrowers with no option, but to wait until their loan is defaulted and they end up in forclosure. My question is, what are these financing companies going to do with all these forclosed properties? With all the New Home Builders giving so many options and credits, there isn’t many buyers interested in buying older homes, which leaves those forclosures just sitting there. And to top it off, most Banks have change all their loan guidelines which make it hard for anyone with unperfect credit or no down payment to qualify. The result, alot of families affected by all these changes, having to move, a forclosure on their credit which makes it hard to get a lease on a new place to live and Banks with alot of empty homes and noone paying for them. How does does that make sense to anyone? I understand the banks have no control of the market, but they made it so easy for anyone to quality, it was their responsibility to make sure the people they were buying homes for, actually had the means to pay or at least the option to get out of the type of loan they were getting into or at least now try to help them find an option and bend their guidelines, just the way they bent them when they approved their loans to purchase these properties.