SUB PRIME OVERSIMPLIFICATION

. THE WRONG PICTURE:
Media outlets, pundits and even government officials blame the sub prime sector for everything: credit crunch, low housing sales, loss of equity, and of course the high number of foreclosures. Sub prime borrowers are said to be low income, bad credit and even ignorant! These poor souls they claim, were taken advantage of by sophisticated Lenders, unscrupulous mortgage Brokers and Bankers. They were then left with mortgages they could not afford and forced to see their American Dream turn into a nightmare.

. Some Facts:
Investors and speculators accounted for roughly 25% to 35% of total home sold in recent years. These individual or groups fueled the market and contributed in part to the rise in home prices throughout. The Investors I know do not fit the description that the media give us. If a market looses 25% to 35% from one period to the next, in the real world, this usually translates into a loss in volume and it has nothing to do with sub prime, right?

.Mortgage Programs Guidelines:
Sub Prime in the case of mortgages are loans that do not fit the lending parameters set by Fannie Mae, Freddie Mac, FHA and VA. It is safe to say that borrowers who used sub prime loans ARE NOT an homogeneous group of targeted minorities with the intent to defraud them, but ANYONE who happens to fall outside of the guidelines of which credit is only one component.
Another misconception is that all sub prime loans are 2-year ARMs: there are 3/5/7/10/15-year ARMs and corresponding BALLOONs to choose from.

I do not pretend to have all the answers here, it is the oversimplification by the media that I beg to differ with. Loosing one's home is a terrible outcome and I would not wish it upon anyone. Singling out one individual, group or program is just outright dishonest unless irrefutable proof is produced.
Remember to check your credit, your title and the mortgage program you choose.
Contact me at 773-562-6972 or e-mail me at: info@p2funding.com and visit us on line at: http://www.p2dunfing.com/