Subprime Mortgages Will Return, But With Some Changes

BOSTON (MarketWatch) — Although “subprime” has become a four-letter word in the country’s collective lexicon and no one is sure when the credit crisis that was spawned by a meltdown in the risky lending sector will ease, mortgage bankers say you can count on this: Subprime shall return.

The next generation of subprime mortgages, however, will look much different than the loans issued during the height of the housing boom in the first half of the decade that are now causing so much trouble, mortgage professionals say.

“So long as we have a policy position in this country of maintaining or further increasing homeownership rates there is going to be subprime lending,” said Mark Fleming, chief economist with First American CoreLogic, a provider of mortgage-risk management and fraud-protection technology.

“We have been very successful in increasing homeownership rates. One of the ways we’ve done that is by creating liquidity and offering credit to people who we traditionally wouldn’t have 20 years ago — the subprime borrower.”

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The quickest path to finding true foreclosure bargains

Following the facts on discounts can help you find the real deals NEW YORK (MarketWatch) —

You’ve heard a lot (probably too much!) about real estate market problems and especially the rapid rise in foreclosures. But as a real estate investor you’re picking up big-time “bargain” signals on your antennae.

The headlines are ominous: some 243,000 foreclosures in August, up 36% from July and 115% from August 2006. There’s blood in the streets.

So how do you get from “there must be bargains out there” to “how much will I save, and where are the best bargains?”

I like to guide any buying decision as much as possible with the facts. But while lots of foreclosures are out there, how good an opportunity they might be was hard to know. Until now.

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1st Time Home Buyers Program with no down payment!

I just spoke to a colleague of mine who works for B of A and she mentioned the following programs that are available.  IF you are interested in finding out more about these special programs just email me.

1st Time Home Buyers


May qualify for a home with NO Down Payment


All Low – Moderate income homebuyers apply!


*  103% Financing available – No Mortgage Insurance       *  Seller credit – OK

*  30 year & 40 year fixed rate loans                                *  Gift money – OK

*  Fico scores NOT applicable in most cases                   *  Other credit OK

*  $1,200. month of undocumented income allowed           *  No reserves required                                                  

Down Payment Assistance Available for qualified buyers

*  City programs offering $15,000.00 – $50,000.00 for Assistance towards your Down Payment

*  MCC – Mortgage Credit Certificate a Federal tax credit  

*  CHDAP – California Housing Down Payment Assistance – 3% of sales price for down payment or closing costs.