NLIC.org

Alex Said:

Do companies really lose money when you don't pay on time but incur their over due charges?

We Answered:

The value of the late fee is designed purely to encourage people to pay on time. It also protects companies against having to draw money out of their cash flow to cover the expenses your paymet was supposed to cover. The companies that fund mortgages owe their investors dividends and such that may be paid out quarterly. If you're missing your payments then they will need to draw from their cash reserves to pick up the slack.

Catherine Said:

Why Do People Think Cutting Interest Rates Will Stop The Mortgage Problem?

We Answered:

I bought my house back when all this started, but I got a decent fixed loan at 6%. I'm a truck driver. I don't know what the answer is, but things are slowing down. It is getting harder and harder to find freight to put in my trailer. It seems like every time get unloaded, it's over 24 hours before my dispatcher finds another load for me to haul. Guys that were making a killing a year ago hauling lumber and building supplies are getting hit hard right now, because no one is building anything.
As for my mortgage payment, it's getting harder and harder to make it every month. I haven't been home in three months now for time off. I can't afford it. The only time I get to see my wife and kids is when I'm passing through and have time to stop for a few hours. Normally I'm home every two weeks. It's definetly slowing down. trust me, we feel it before anyone.
My home's value has sunk below what I owe. And I sank a $10,000 down payment on the thing when I purchased it. I feel like I'm hanging on by my fingertips. Like I said I don't know what the answer is. I thought since I got the fixed rate and didn't get the ARM I was safe. But the amount of people going into foreclosure has affacted me. I didn't see that coming.
If I had it to do all over again, I would have stayed in the apartment and waited until now to buy.

Louis Said:

What affects Credit Ratings / Score?

We Answered:

Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely guarded secrets, the Fair Isaac Corporation has disclosed the following components and the approximate weighted contribution of each: [2]

35% — punctuality of payment in the past (only includes payments later than 30 days past due)
30% — the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% — length of credit history
10% — types of credit used (installment, revolving, consumer finance)
10% — recent search for credit and/or amount of credit obtained recently

Barbara Said:

Can you get a mortgage if you have poor credit but a 50% plus deposit?

We Answered:

watch out for Helen Okafor answer = i have seen this many times on this forum

now for your question

called a dead mans loan

your 50% down secures any loan - at any institution - 50% down is what is required of 90 year olds who want to mortgage something, because they know that the person won't live long enough to pay they loan off

understand?

with that kind of down payment your the boss - 8 yr ago mistake shouldn't be used against you - make appointments at different loaning institutions and state that your shopping for the best deal and see what they offer you

pick the best

Cheryl Said:

Which was the economic meltdown cause: unqualified home buyers,lender malfeasance or bundled investment fraud?

We Answered:

All of the above plus failure of Regulatory Agencies to do their job.

Also, I must point out that there was never any law that FORCED banks or and other lending entity to make loans to unqualified borrowers.

This BS republican talking point is being repeated here. This is a distortion of the the provisions of the Community Reinvestment Act. This was a favorite LIE of Limbaugh, Hannity Beck, etc.

"The debate surrounding the passage of the CRA was contentious, with critics charging that the law would distort credit markets, create unnecessary regulatory burden, lead to unsound lending, and cause the governmental agencies charged with implementing the law to allocate credit. Partly in response to these concerns, the act adopted by Congress included little prescriptive detail. Instead, the CRA simply requires the Federal Reserve and the other federal financial supervisory agencies:

* to encourage federally insured depository institutions to help meet the credit needs of their entire communities, including low- and moderate-income areas, consistent with safe and sound operations;
* to assess their records of performance under the CRA during examinations; and
* to take those CRA records into account when evaluating proposals for expansion.

The law gives the agencies considerable discretion and flexibility to fashion programs and procedures to carry out the purposes of the law, to issue implementing regulations that include measures of performance, and to modify those regulations in response to changing markets. This flexibility has contributed to CRA's relevance and adaptability through times of rapid economic and financial change, and widely differing economic circumstances among neighborhoods."

Another piece of BS is that only democratic Presidents and politicians had anything to do with this. The republicans pushed (and push) deregulation -- the government getting out of the way. George W Bush talked about "building an ownership society" all the time." George W Bush, as POTUS was in charge of enforcing federal regulations and appointing officials to regulatory agencies (often cronies and political hacks) for eight year, and the meltdown happened on his watch.

Christy Said:

Am I more likely to get a mortgage if my dad acts as a guarantor.?

We Answered:

Yes...but.

Now is a particularly bad time for anyone with less than perfect credit.

If you try right now (instead of 6 months from now...), my guess is that you will have to come up with 10-20% for a down payment.

Does your father have excellent credit? Can he afford to make your mortgage payment and his own by himself (without you)? If not, you may not make it through underwriting.