| Connecting dots behind lender mercy
Home foreclosures are on the rise across America as years of sloppy homework and outright fraud come home to roost. And some big mortgage companies, like EMC Mortgage Corp., are making the rounds among their faltering mortgage holders, trying to keep them propped up with renegotiations. It's a warning to anyone contemplating home purchases or a new loan.
To read news accounts of this kind of thing, what some mortgage companies are doing sounds like some sort of noble effort to help out the little guy. As many in the Poconos know, lending money to people who can't afford to borrow money is not noble at all. It's a huge scam run by people who know how to exploit the shadowy parts of our lending systems.
The missing news from day-to-day coverage of all this is the increasing scrutiny of Freddie Mac and Fannie Mae by Congress.
Consumer Credit: Shopping for a new home? Avoid mortgage mistakes
A home is more than a place to live. It is a financial asset, a place to raise a family and an investment in the community. If you are considering a new home, you aren't alone. According to the National Association of Realtors, based on current trends and underlying demand, the overall U.S. home ownership rate could exceed 70 percent by 2013. To help you make the most of your investment, avoid common and costly mortgage mistakes. - Mistake No. 1: Confusing the terms "qualify" and "afford." When determining how much home you can afford, remember that your mortgage payment plus your ongoing debt (credit card payments, car payments, student loans, child support and so forth) should be no more than 41 percent of your gross income, or you are getting into trouble.
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