Debt Management Mortgage

   Debt Management Mortgage

The American Dream includes homeownership.  Real estate was the way to go if you wanted to be financially secure.  You could buy property and land and it would increase in value.  You could have purchased a home in 1960 for $160,000 and in 1990 it would be worth $ 350,000 and it would be paid for.  REAL estate just kept going up and up in value.  The sky was the limit.  You could get another loan against it and say make improvements that would make your home worth even more money. You get a loan to pay for your son or daughter’s education (for college) or at an ivy league academic institution.  It was too good to be true. 
For each reaction there is an equal and opposite reaction. Mortgage loans were varied and some bordered on criminal.  You had to have a license to be able to be a loan officer.  It was that complicated. So it stands to reason that the average person may not know all there was to know about the different types of loans.  And there were so many.  Take for instance, the no documentation loans that became available.  You did not have to have proof of income because you did not even have to have a job! Now most of these loans were at the highest interest rates imaginable.  And the loaner company or corporation did not even plan to “carry or keep” the debt.  They planned to sell it to another company or corporation.  The person obtaining the loan, in most cases eventually would get to the point where they could not pay their obligation/loan.  The company or corporation who held the loan that was defaulted on now had the property.  
When all was said and done and the cycle came full circle, we had another perfect example of the Domino Effect, the sky is falling and GREED and the repercussions of greed.  Take responsibility people.  Own your mistakes.  Learn from them.  Corporations, Insurance companies, financial institutions, loan officers, appraisers, and lastly the individuals who took advantage and got taken advantage of.  Stop pointing fingers and let’s work together to get solutions.  And don’t just go for whatever someone tells you.  If you don’t know ask somebody.
On another note, the loan modification program or (HAMP) may be the beginning of the solution.  We will watch and see.  Time will tell.