Most people fail to realize that by prolonging their problem, they are much further from a real solution.
Restoring trust and confidence in any system is a slow methodical process. Restoring confidence in the United States financial system is even more difficult, but not impossible.
There are many people facing foreclosure. The situation is totally unacceptable. The number of older homeowners facing foreclosure, over 700,000 of whom are 50+, means it will be hard to recover in a slowing economy, and the fact that statistics are that high is also totally unacceptable. Imagine working all your life just to see it disappear, regardless of age. Should we be proud of ourselves for stimulating the economy for a while? The country should have strong economic stimulus plans, and should never rely on duping homeowners to release the equity in their homes for economic gains.
Now that mortgage rates are low what does it take to refinance your home? A recent analysis by Inside Mortgage Finance found that the average score for borrowers whose loans were sold to Fannie Mae and Freddie Mac was 748 out of a possible 850. Clearly many borrowers with impaired credit will not be able to refinance as lenders are unwilling to part with money to refinance the credit-impaired sector. The problem is a two-pronged issue that often requires borrowers to hurt their credit before a work-out is considered.
When it comes to annoying lenders and mortgage servicers Saxon Mortgage Services Inc. takes the title as the most annoying, which reflects poorly on parent company Morgan Stanley. We are qualified to make that assessment for several reasons: