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Home Loans
Reliable home loan and mortgage information for home owners.
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US $12.95
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US $0.99
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Anyone heard about taking over home loans?
Should Lenders be required to modify home loans before allowing foreclosure?
With over $4 million applications pending, Lenders have only modified 66,000 home loans. Lenders come up with every excuse in the book and have no intention or desire to modify your loan without a fight. Why would they rather foreclose and force future value of their assets down when home prices fall? Should our Government pass legislation requiring Lenders to modify all loans in default by reducing the principal to market value and fixing the rate at 2 3 % while reseting the term? Instead, banks will foreclose, spend $30,000 including lost revenue while the house sits on the market for 9 months before they resell it for market or to an investor for 30 % below market. Fixing the housing market involves saving people from losing their homes and preventing values from free falling again.
How do banks make money from home loan offset accounts?
I'm looking at home loan features, one of which is an offset account. Seeing as in general banks charge home loans at a higher rate than what they pay savings accounts, us borrowers would save interest money by having this account whilst the banks earns less.So why do banks offer this feature or basicall how do they make money from this ?Yes they charge a pretty small fixed monthly fee and a slightly higher rate, but wouldn't say thats significant, maybe they just want to have your savings account with them ?
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