Lenders Had A Large Part In The Housing Market
As a foreclosure attorney of Sulaiman Law and Associates in Illinois
, Ahmad Sulaiman has represented many homeowners who could no longer afford to pay off their lenders because of the current state of the economy and housing market. And according to him, one out of every nine homes in America is vacant because the homeowners could no longer pay their loans and their homes went into foreclosure.
If it isnt happening to you, then you have at least heard about the current housing market crisis and the thousands of people who are losing their homes every year. Owning a home doesnt seem to be a new phenomenon. Our parents, grandparents, and even great grandparents all successfully owned homes before we ever even considered the option. But something changed.
Lenders lowered their guidelines.
The general consensus had always been that banks would only supply a loan that was three to four times the average yearly income of a household (this was considered the safe range), but we saw lenders approving loans that were 5 to 10 times more than a homeowner was making in exchange for higher interest rates. Lenders had a good idea of what they were doing five or so years ago when this all started. They lowered their guidelines so drastically that pretty much anyone could qualify for a mortgage under the new standards.
In fact, a lot of these homeowners never should have been approved for the types of loans they were taking out in the first place. And as we are seeing now, this increase in lending has finally caught up to us. As a result, more and more families are left struggling to pay their mortgages.
Owning a home is no longer a good investment.
In the past, owning a home was one of the best investments you could make, and you would surely make a profit when you sold your home down the line. But that was until now.
Typically, a house was listed on the market for $175,000 a few years ago, but you bought it two years later at $275,000. Common sense would lead you to believe that your house would continue to increase in value, but in reality the market now says that your house is back to being worth just $175,000 not that you could find a buyer anyway. Either way, this is a major loss on your investment. Youre still paying a $275,000 loan for a home that isnt even worth that much anymore.
And, to top it off, you come to find out that your lender is refusing to refinance you, even though they assured you that it would be a possibility when you first signed with them.
A qualified lawyer will help you.
These days, higher interest rates and the faltering job market have left many people using 50% to 110% of their monthly income to pay for their homes. It is impossible for them to make ends meet. As we have seen, people have to choose what costs are the most crucial to them. Obviously, you need to buy groceries, but now having dinner on the table means that youre hundreds of dollars short of meeting your mortgage payment. Thus, the foreclosure process begins.
Now you are aware that lenders had a large part in the current situation which many homeowners find themselves in, so dont let them take away your home and destroy your credit in the process. The best defense you have right now is the law. And the best way to exercise this defense is to hire a qualified attorney in your area who can review your particular case and come up with plausible solutions for you.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article create an attorney-client relationship.
by: Ahmad Sulaiman
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