To the disappointment of lawmakers and mortgage professionals, there may be additional bad news coming for those wanting to buy a new home not to mention the amount of foreclosures that are still heading our way.
Applicants whose credit scores are less than 640 may have a tough time getting a 30-year fixed-mortgage. Even if one has a good down payment this may not help them with securing financing thus showing that keeping one's credit score intact or taking measures to repair one's credit report is an absolute necessity.
Credit scoring companies are now saying that roughly 28.7 percent of consumers have a credit score below 620. In other words, nearly one-third of loan applicants may be facing grim news as regards the status of their St Louis home loan.
Potential borrowers credit scores 720 or higher received the lowest interest rates with an average annual percentage rate of 4.3 percent for a 30-year fixed-rate mortgage.
The next level of credit scoring fell into the area of 620 to 719. These individuals received an interest rate between 4.43 and 4.76. Numbers were not available for credit scores below 619.
Most economists and mortgage professionals attribute this trend to a tightening of credit standards, which some see as a good start for helping this mortgage crisis.
Most experts are saying that since 2006, sub-prime loans were very easy to get approved for and those who were and couldn't afford their payments helped create this mortgage fiasco.
Banks and lenders, for many obvious reasons, felt the necessity to tighten their lending requirements which in turn makes it harder for potential homeowners to get the approval they need to buy a new home.
Which brings us to the second portion of this discussion, that being the foreclosure data. There is startling news on the horizon that there are 7,018,000 mortgages in the United States that are 30 or more days delinquent or in the process of foreclosure.
There are reports that a housing database showing 39.9 millions home loans has proven beyond the shadow-of-a-doubt that loan modification programs have done little to help homeowners.
But the to say there are 7 million loans going unpaid is just the tip of the iceberg. There are already 2,000,000 plus mortgages that are in foreclosure litigation with homeowners hoping to get relief with the unsuccessful loan modification programs. Others are seeking assistance with a principal reduction program.
The remainder 5,000,000 homeowners are officially in what is known as the pre-foreclosure stage with approximately fifty percent posting a 90-day plus derogatory mark on their credit score.
Hence, the nation's pre-sale foreclosure inventory rate now stands at 3.84 percent which is up 1.1 percent from the August 2010 reading and 3.6 percent above a year earlier.
These foreclosure statistics are forcing many homeowners to seek legal counsel by obtaining a forensic loan audit to see if their mortgage note contains any type of fraud or possible mistakes.
Then when you factor in credit scores, nearly one-third of Americans cannot buy a new home which tells us that this housing crisis is no where near being finished and that it could take years for a full recovery.
Call Liberty Lending at 314-336-9111 to get details on all St Louis home loans. Principal reduction program is now available for homes and businesses. Call Floyd at 314-334-0210.Awakening: The Sunhook Spire Collector's Edition,Drawn®: Dark Flight Collector's Edition,Incredible Dracula: Chasing Love Collector's Edition,Secrets Of The Seas: Flying Dutchman Collector's Edition,Spirits Of Mystery: The Dark Minotaur Collector's Edition
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